The price limit system originated from the early foreign securities market. It is a trading system in the securities market to prevent the trading price from soaring and plunging, curb excessive speculation and appropriately limit the price rise and fall of each stock on the same day.

Some exchanges will set limits on the single-day fluctuation range of securities/commodities/contracts, such as limiting individual stocks to be higher or lower than the closing price by 65,438+00% in a single trading day. When the price rises to the upper limit of one day, it is called daily limit, and when the price falls to price floor, it is called daily limit. Some exchanges will stop trading at the daily limit or daily limit until the market price is out of the upper or lower limit. Others will resume trading at an expanded price range after a short pause.

2. When did China introduce and implement the price limit system?

The current price limit system of China's securities market was promulgated on February 2003 1996 13, and implemented on February 26, 2006, aiming at protecting investors' interests, maintaining market stability and further promoting market norms. According to the regulations, except for the first day of listing, the trading price of stocks (including A and B shares) and fund securities in a trading day shall not exceed 10% compared with the closing price of the previous trading day (stocks starting with S, st and s*st shall not exceed 5%), and the entrustment exceeding the price limit shall be invalid. The main difference between China's price limit system and foreign systems is that after the stock price reaches the price limit, it does not completely stop trading, and the trading within the price limit or the price limit can continue until the close of the day.

3. What is the time node in 2003?

On June 9, 2003, the Supreme People's Court promulgated "Several Provisions on the Trial of Civil Compensation Cases Caused by False Statements in the Securities Market", which came into effect on February 6, 2003.

19 On March 9, 2003, Sino-Swiss Venture Capital Fund Management Co., Ltd., the first Sino-foreign joint venture industrial investment fund management company in China, opened in Beijing.

On April 4, 2003, the Shanghai and Shenzhen Stock Exchanges issued the Notice on Strengthening Risk Warning for Companies with the Risk of Termination of Listing, and decided to implement "delisting risk warning" for companies with the risk of delisting, so as to fully reveal the risk of possible delisting of their shares, protect the legitimate rights and interests of investors and reduce market risks. These Measures shall be implemented as of May 8, 2003.