Next Monday, A-shares will bid farewell to the 5% price limit.

Starting July 6, the price limit for mainboard risk-warning stocks will be adjusted to 10%. A Shanghai Securities News reporter learned that this revision of trading rules has limited impact on investor trading operations, but investors still need to pay attention to the changes and participate in trading rationally.

Mainboard Risk-Warning Stock Price Limit Changed to 10%

On April 24 of this year, the Shanghai, Shenzhen, and Beijing stock exchanges simultaneously released revised new trading rules (hereinafter referred to as "trading rules"), which will be officially implemented on July 6. This revision aims to optimize securities trading systems, promote stable market operations, improve market pricing efficiency and liquidity, and better meet investor trading needs.

According to reports from the Shanghai Stock Exchange, the new trading rules mainly involve three core adjustments.

First, adjusting the price limit for mainboard risk-warning stocks. Previously, the price limit for mainboard risk-warning stocks was 5%. Starting July 6, the price limit for mainboard risk-warning stocks will be adjusted to 10%, consistent with other mainboard stocks, to improve pricing efficiency and reduce mechanistic differences within the sector.

Second, optimizing the closing trading mechanism for funds. Previously, Shanghai-listed fund closing trades used a continuous auction model. Starting July 6, Shanghai-listed fund products, including ETFs, LOFs, and REITs, will switch to a closing collective auction during the 14:57-15:00 period, consistent with stocks, with the closing price determined by the auction result. This adjustment helps unify the closing trading mechanism for various Shanghai-listed products, further enhancing price stability and pricing efficiency during the fund closing period.

Third, expanding the applicable products for after-hours fixed-price trading. Previously, after-hours fixed-price trading was only applicable to STAR Market stocks. After the new rules take effect, this trading method will be extended to all Shanghai-listed A-shares and ETFs. In terms of specific trading arrangements, investors can submit closing price orders from 9:30 to 11:30 and 13:00 to 15:30 on each trading day. From 15:05 to 15:30, the exchange system will match closing price orders in chronological order and execute them at the day's closing price. Additionally, based on rule changes and business needs, the trading rules have also made adaptive adjustments to relevant provisions such as disciplinary actions.

Similarly, the Shenzhen Stock Exchange's trading rule revisions include the following five aspects: First, introducing a market maker system on the ChiNext board. ChiNext stock trading may implement a market maker mechanism, with conditions, rights, obligations, and supervision matters for market makers to be separately specified by the Shenzhen Stock Exchange. Second, adjusting the confirmation time for block trades of ChiNext stocks under agreement to 9:30-11:30 and 13:00-15:30. Third, expanding the scope of after-hours fixed-price trading from ChiNext stocks to A-shares and exchange-traded open-end funds. Fourth, optimizing self-regulatory measures and disciplinary action arrangements. Fifth, adjusting the price limit for mainboard risk-warning stocks from 5% to 10%.

The Beijing Stock Exchange's revisions this time include: introducing after-hours fixed-price trading for stocks, adjusting the block trade price range for stocks without price limits, clarifying trading regulations for risk-warning stocks and stocks pending delisting, and adding regulatory arrangements for severe abnormal fluctuations. At the same time, the trading rules have been adjusted in terms of expression and structural organization.

Investors Need to Pay Attention to Three Major Changes

Overall, the revision of trading rules has limited impact on investor trading operations. However, investors still need to pay attention to changes in trading rules and participate in trading rationally.

First, adjusting to the closing trading habit for funds. Under the original continuous auction mechanism for funds, during the 14:57-15:00 period, investors could submit limit orders and market orders, and unexecuted orders could be canceled, with trading occurring continuously in real time. After the new rules take effect, similar to stocks, in the last three minutes, investors can only submit limit orders and cannot cancel them, with all orders being matched through a unified collective auction. Investors should pay attention to the changes in order submission and matching mechanisms during the closing period.

Second, becoming familiar with the new after-hours fixed-price trading method in a timely manner. After-hours fixed-price trading does not have an investor suitability threshold, with a minimum order quantity consistent with auction trading and extending trading by half an hour. For investors with trading needs, after-hours fixed-price trading can serve as an optional method. Note that after-hours fixed-price trading executes at the closing price and does not allow for independent pricing, and its trading activity level differs significantly from continuous auction trading. Investors are advised to trade rationally based on the closing price and liquidity conditions.

Third, prudently participating in mainboard risk-warning stock trading. A capital market researcher told reporters that although the price limit for mainboard risk-warning stocks has been relaxed, their risk characteristics remain different from ordinary stocks. They still indicate that the company has operational or other significant risks, and the delisting risk still exists. Investors should fully understand the risk-warning system and trading regulations for stocks, pay attention to the stock's fundamentals and relevant risk warning announcements, and prudently participate in risk-warning stock trading based on their own financial situation and risk tolerance.

Appendix: Mainboard Risk-Warning Stocks (as of closing on July 1)

Source: Shanghai Securities News

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