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What is Dynamic Price Limit?

Dynamic price limit is a mechanism in the China Connect (A-shares) market. It is designed to mitigate the impact of sudden price fluctuations and reduce the risk of market manipulation. The mechanism is triggered when a stock's price moves up or down by a certain percentage within a short period.


If a stock's price rises or falls by more than 5% within five minutes, trading in that stock is suspended for five minutes. If the stock's price rises or falls by more than 7% within five minutes, trading in that stock is suspended for the remainder of the day.


The dynamic price limit provides additional protection for investors and the stock market. However, it is important to note that it may not prevent all sudden price fluctuations.


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