At present, the Shanghai and Shenzhen stock exchanges implement a 1% price limit. The specific content is that since December 16, 1996, the Shanghai and Shenzhen stock exchanges have imposed price limits on the trading of listed stocks (including A and B shares) and fund securities respectively, that is, in a trading day, except the securities on the first day of listing, the trading price of the above securities shall not rise or fall relative to the closing price of the previous trading day.

the calculation formula is: (1 1%) × the closing price of the previous trading day, and the calculation result is rounded to .1 yuan; Entrustments that exceed the price limit are considered invalid.

the price limit refers to the range of fluctuation of the securities trading price of the day on the basis of the closing price of the previous trading day in order to curb excessive speculation and prevent excessive ups and downs in the market. The highest price limit for the stock price to rise to this limit is the daily limit, while the lowest price limit for the stock price to fall to this limit is the daily limit. Price limit is a measure to stabilize the market. In overseas financial markets, there are also measures such as market disconnection measures and suspension of trading, speed-limited trading, special quotation system, limit of declared price and transaction price, adjustment by experts or market intermediaries, and adjustment of trading margin ratio. Three measures are commonly used in China's futures market: price limit, suspension of trading and adjustment of trading margin ratio.

However, in the following cases, stocks are generally not limited by the fluctuation range:

1. On the first day of listing of new shares (the price shall not be higher than 144% of the issue price and not lower than 64% of the issue price)

2. After the share reform is completed (starting with S, but not ST), the first day of resumption of trading

3. On the day of listing of additional shares

4.

The rise and fall of stock prices are determined by the profits created by listed companies for shareholders in the long run, but by the relationship between supply and demand in the short run, and the factors that affect the relationship between supply and demand include people's profit expectations of the company, artificial speculation by large households, the amount of market funds, and policy factors. Value investment depends on whether investors think a stock is undervalued or overvalued, or whether the whole market is undervalued or overvalued.

the simplest method is to compare a company's P/E ratio, dividend and yield with the average level of competitors in the same industry and the whole market. If a company's technical indicators are lower than the market performance, you should ask yourself why. Usually, there are some factors that you don't understand, such as potential losses, poor management, declining market share, employee problems and so on.