According to relevant regulations, the price limit of China's A-share market is 10% for the main board of Shanghai and Shenzhen Stock Exchanges, and 20% for the Growth Enterprise Market and Science and Technology Innovation Board Exchanges.
After the daily limit, the stock price will not change. Generally speaking, the probability that stocks will continue to fall after the daily limit is relatively high, and investors should avoid such stocks. What is the reason for the daily limit of stocks?
1, sudden major policy negative
Major policy news is bound to affect the investment market. If the national policy does not support it, the investment prospect is worrying, and the stock price limit is inevitable. For example, some time ago, there were frequent bad news about teaching and training institutions, which directly led to the collapse of education stocks, and the national policy directly led to a fundamental change in the logic of the education market.
2. The main stocks panic in the low position.
The best way for the main force to achieve the goal of quickly absorbing goods is to suppress the stock price desperately, even at the continuous limit. Retail investors don't know what happened, so most of them will choose to cut their meat and leave the market, which is extremely scary, while the main force has successfully achieved the goal of low absorption.
3. Wash dishes when you go upstairs.
When the stock price rises for a period of time, the main force will generally wash the dishes and change a batch of operations. In fact, the operation method of dish washing is similar to that of limit shipment, and the ultimate goal is to control stock chips and prepare for expanding profits in the market outlook.
4. Reorganization failed.
Usually, before the stock reorganization, the main force will try their best to obtain first-hand information, and then ambush in advance to wait for the future share price to double. However, the reorganization may not be successful. If it fails, the main force will be eager to withdraw from the market because the time cost of sitting in the village is too high, so as to adopt the method of continuous down limit shipment.