Here Is What’s Wrong With the Circuit Breakers in China’s Stock Market

Circuit breakers were triggered in China stocks twice this week, halting trading each day once its CSI 300 index slid 7 percent. This sparked a global markets selloff – but should the market be allowed to fall further? 'As soon as the stock market closes - you're going to exacerbate the panic that sellers feel in terms of trying to get out of their positions,’ said Michael Hewson, chief market analyst at CMC Markets, based in London. ‘As soon as the markets reopen again, you're going to get a wall of sell orders into the market.' Circuit breakers may also be helping to mask the true value of China’s stocks. 'Do you know that even if it were down 10 percent - it would be positive because we would have some price discovery,’ said TheStreet’s Action Alerts PLUS Portfolio Manager Jim Cramer. ‘Bottom line on China: if we get rid of the bubble, say it's Nasdaq 2,000, it would go down 1,000 points - keep that in mind - that's a 33 percent retracement from where it is now.’ Chinese officials say no circuit breakers will be in place for Friday’s trade. TheStreet’s Scott Gamm reports from Wall Street.