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> Shares of companies associated with Fan plunged by 10 percent, the maximum daily limit on the Chinese stock market. ?! How does that even work?
by GuiA 8y ago
> Shares of companies associated with Fan plunged by 10 percent, the maximum daily limit on the Chinese stock market.
?! How does that even work?
- lurker458 8y agotrading is suspended once it hits the threshold
- iliketosleep 8y agoThere is a rule where a stock isn't allowed to rise or fall by more than 10%. It doesn't really work because there are ways to circumvent it using financial instruments which are a proxy of the stock price but not subject to the same rules.
- dangero 8y agoUS stock markets also have points they will freeze at: https://personal.vanguard.com/us/content/Funds/FundsToolsCircuitBreakersJSP.jsp https://personal.vanguard.com/us/content/Funds/FundsToolsCir...
- quink 8y agoThat’s for the entire S&P 500 index and only applies to a 20% drop. Chinese regulations apply to individual stocks and kick in at 10%. That’s a massive difference. And re the Limit Up-Limit Down rule, that’s a trading halt for five minutes, not the entire day. Again, not as much of a, but still a massive difference.