"Cooling Off Period": Investors Can Only Trade At A Price Limit.

Hong Kong Exchanges and Clearing Ltd (HKEx) officially introduced 16 days ago.

"The adjustment mechanism" launched consultation and suggested that a 5 minute "cooling off period" should be set up during the stock trading period.

The mechanism aims to reduce the sharp rise and fall of the market. The first stage involves 81 stocks of the Hang Seng Index and the national index and 8 futures of the Hang Seng Index and the national index.

The new mechanism, in the new mechanism, will trigger a 5 minute "calm period" in the trading period if the price of the stock is more than 10% more than 5 minutes ago.

During the "cooling off period", investors can only buy and sell the paction within 10% of the paction price before 5 minutes, and the paction beyond the price range will not be accepted.

The announcement also indicates that the first price of the opening market is not limited by the "cooling off period", that is, the fluctuation of the first price can be more than 10% of the market price on the previous trading day.

In addition, in order to avoid the overnight risk of investors, there will not be a "cooling off period" in the 15 minutes before the market closes, and there will be 4 cooling off periods for every product in the regulatory mechanism, two times in the morning market and in the afternoon market respectively.

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Compared with the US and mainland trading mechanism, the HKMA's proposed adjustment mechanism will not trigger a moratorium on trading, aimed at reducing market intervention.

Li Guoqiang, director of marketing operations at the HKEx, said that the mechanism is not limited to buying and selling. It is hoped that investors will be able to take note of the sharp fluctuations in stocks and allow institutional investors to re-examine the mechanism and procedures of their trading.

In addition, after nearly 6 years,

It also puts forward the introduction of closing price and new price limits and random market closing stages, so as to avoid a large number of buying and selling situations at the moment before the end of the bidding period.

It is reported that the HKEx introduced the closing time of the auction market in May 2008. Subsequently, due to some unusual price changes during the closing period of the auction, the HKEx was worried that there might be misconduct such as abuses in the closing period.

In order to maintain market order and pparency in order to stabilize public confidence, the HKEx abolished the mechanism in March 2009.

In recent years, stockbrokers and investors have been calling for the restoration of the mechanism.

The two recommendations will be consulted as of April 10th.

Li Guoqiang predicts that if the proposal is accepted by the market, it will be launched in the second, third quarter of 2016.