Finance : economics > rise in price Range of a price drop restraint
Contents
No. 1
  Price limit limit up, limit down
  The largest market trading day price fluctuation limit. Price limit is in a trading day, in addition to securities listed on the first day, the securities transaction price relative to the previous day's closing rate of price changes, not more than 10%; more than limit the commission to be invalid Change commissioned.
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No. 2
  What is the price limit?
  Stock price limits is to curb excessive speculation, to prevent excessive market rises and falls, and in the provisions of the daily trading price of securities trading day's closing price the previous trading day based on the up and down volatility. Stock prices rose to limit the magnitude of the price ceiling for the daily limit, while the rate decreased to the minimum limit for the daily limit.
  Most of Europe and other developed countries have stock price limit provisions. In China the Shanghai and Shenzhen Stock Exchange has been no implementation of the trading system of price limits, but the stock price rises and falls are difficult to control. Extension of history have appeared in the Industrial (600 601), Shenhua Industrial (now Brilliance Group, 600,653), Northeast Power (now ST Northeast Electric, 0585) and other stocks rose more than 100% 一日 situation and there have been drugs such as Southwest industry (600,666) and other 一日 plunged more than 50% of cases. Therefore, the Shanghai and Shenzhen Stock Exchanges have also been introduced, ranging from 0.5% -10% price limit system. At present, China Shanghai and Shenzhen exchanges are implementing a 10% increase limit, its specific content:
  Since April 1998, the China Securities Regulatory Commission on the shares of some listed companies have introduced special treatment, that is, ST, its stock price limit of 5%. The formula is: the previous trading day's closing price × (1 ± 5%), calculated as above.
  In addition, the PT class of stock, which rose 5% limit, no limit decreases.
  The old cities of the original fund and traded around the Securities and Exchange Centre, a fund clean-up after the listing of standardized securities investment funds, in its first day of listing, the listing price limits to its net as_set_ value per fund unit, 30%, or NAV per fund × (1 ± 30%), the next day before the trading price limits for the closing price of 10%.
  Price limit is the most direct role in the market rises and falls within a day to suppress and prevent short-term market risks, but on the other hand, price limits also has implications for help or a certain degree of role, but also vulnerable to large capital control. Overall, short-term price limits can only change the trend of the broader market and individual stocks, on the long-term market volatility is not significantly affected.
  But generally the following types of cases, the magnitude of the stock without restriction Change:
  1. The first day of IPO.
  2.G shares resume trading on the first day. G Unit: stock split share structure reform pilot
  3. Suspend the listing of the ST shares the first day of resumption of trading losses.
  4. Warrants Price Limits can be greater than 10%.
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