Is there a limit on HK stock price volatility

The Hong Kong stock market does not have a 10% trading suspension system. In an exceptionally stable market environment, the trend of Hong Kong's large-cap blue-chip stocks and H shares is more stable relative to A-shares.

However, starting from August 22, 2016, the Hong Kong Stock Exchange has launched a market fluctuation adjustment mechanism (cooling-off period) to prevent extreme price fluctuations caused by major trading errors or other abnormal events and maintain the normal order of the market.

The so-called "cooling-off period" means that if the 81 HSI and HSCEI constituent stocks rise or fall by 10% within 5 minutes, they will enter a 5-minute "cooling-off period". Investors can only trade within the specified price range. After the 5-minute cooling-off period, the market will resume normal trading.

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