Top 10 events that moved the stocks

5. New circuit-breaker system promises stability

The circuit-breaker mechanism, which can suspend trading for 15 minutes when the key stock index CSI 300 reaches the daily limit by a sudden five percent swing, was introduced in early December, and will start to take effect from the beginning of 2016.

Trading will be halted for the remainder of the day when the CSI 300, which tracks some of the large-cap stocks in Shanghai and Shenzhen, moves by 5 percent after 2:45 pm, or 7 percent at any time during the trading session. The mechanism will be implemented in Shanghai and Shenzhen bourses as part of China's efforts to check abnormal price swings in the equity market, and to help avoid market panic.

The mechanism is also one of the reforms made by authorities after the market rout between June and August. The new mechanism will protect smaller investors who have less access to information, said analysts. Introduction of the circuit-breaker was based on unique characteristics and trading habits in the Chinese market, according to authorities. All shares are still subject to 10 percent daily limit under the new rules.