What is Dynamic Price Limit (TnG)?

Dynamic price limit is a mechanism in China Connect (A-shares) market. The dynamic price limit is designed to mitigate the impact of sudden price fluctuations and reduce the risk of market manipulation. It is triggered when a stock's price moves up or down by a certain percentage within a short period.

Dynamic Price Limit: If a stock's price rises or falls by more than 5% within five minutes, trading in that stock is suspended for five minutes. If the stock's price rises or falls by more than 7% within five minutes, trading in that stock is suspended for the remainder of the day.

The dynamic price limit provides additional protection for investors and the stock market. It is important to note, however, that the dynamic price limit may not be able to prevent all sudden price fluctuations.