Recently, the Shanghai Stock Exchange, Shenzhen Stock Exchange, and Beijing Stock Exchange simultaneously solicited public opinions on the revision of trading rules. The three major exchanges have introduced a series of targeted institutional optimization measures from multiple dimensions, including price fluctuation limits, trading mechanism innovation, and enhanced risk disclosure. Overall, this round of reform can be summarized in three keywords: deregulation, introduction, and constraint, which work together to point towards a more mature and clearly stratified market system.
The most noteworthy measure from the Shanghai and Shenzhen exchanges is *to relax the price fluctuation limit for risk warning stocks (ST and ST) on the main board from 5% to 10%. For a long time, ST and *ST stocks have been subject to stricter price fluctuation limits due to higher fundamental risks, aimed at preventing excessive speculation. However, in practice, the 5% limit often creates a &#34;magnetic effect,&#34; leading to frequent trading halts in extreme market conditions, which not only hinders liquidity but also prolongs the clearing cycle. By raising the fluctuation limit for ST stocks on the main board from 5% to 10%, it achieves &#34;equal rights&#34; in fluctuation limits with ordinary stocks on the main board. When risk enterprises face substantial negative news, the 10% fluctuation space allows stock prices to reflect their intrinsic value more quickly, avoiding liquidity exhaustion caused by prolonged &#34;silent declines.&#34; The previous 5% fluctuation limit was often exploited by speculative funds to create false prosperity through small capital trading halts; after the adjustment to 10%, the cost and risk of speculation will double. In the future, the ST sector may show more pronounced differentiation: companies with genuine restructuring expectations will recover their valuations more quickly, while the speculative space for &#34;shell resources&#34; may be compressed.
The Shenzhen Stock Exchange's introduction of a market maker system in the ChiNext is another significant leap following the Sci-Tech Innovation Board. The ChiNext gathers a large number of high-growth, high-tech companies, but these companies often face uneven liquidity during market fluctuations due to their strong industry attributes and complex valuation models, leading to liquidity issues where stocks cannot be bought or sold. The introduction of market makers aims to find reputable brokerage firms with capital that can provide counterparty trading during periods of market overheating or cooling, effectively smoothing out sudden fluctuations. Moreover, professional market-making institutions can provide more reasonable reference prices for technology companies through in-depth research and pricing models.
Compared to the &#34;deregulation&#34; and &#34;introduction&#34; of the Shanghai and Shenzhen exchanges, the Beijing Stock Exchange's reform emphasizes &#34;management.&#34; The Beijing Stock Exchange proposes to increase risk disclosure arrangements for risk warning stocks and stocks under delisting arrangements, and set a daily purchase limit for risk warning stocks. This measure directly addresses the issue of some investors blindly chasing high-risk targets in the current market. The Beijing Stock Exchange has many small-cap stocks, akin to a &#34;delicate small pond&#34;; if a large speculative ship enters, it can splash water on the people on the shore. Setting a daily purchase limit, combined with enhanced risk disclosure arrangements, directly targets the gambler mentality of those looking to make a big bet for a turnaround, and can effectively stifle the tactics of &#34;junk stocks&#34; being suddenly pumped to attract retail investors. This guides capital towards truly high-quality, specialized, and innovative enterprises with growth potential
It is important to note that this round of rule optimization does not mean a decrease in market risk; rather, it may increase short-term volatility and investment difficulty on certain levels: the volatility of ST and *ST stocks has expanded, significantly raising short-term risks; under the market-making mechanism, the price fluctuations of ChiNext stocks may become more &#34;sensitive,&#34; and the strengthened trading constraints of the Beijing Stock Exchange mean that high-risk targets will be harder to &#34;speculate&#34; on. For investors, the most important change is that the space for arbitrage based on rules or emotional speculation is being compressed, while investment methods based on fundamental research and long-term value judgments will have greater advantages.
The simultaneous revision of trading rules by the three major exchanges is an important step towards a more mature A-share market. Whether it is the adjustment of price fluctuation limits, the introduction of a market maker system, or the strengthening of risk disclosure, it reflects the regulatory authorities' prudent balance between &#34;activating the market&#34; and &#34;preventing risks.&#34; It is foreseeable that as these measures gradually take effect, the A-share market will exhibit higher liquidity, a more effective price discovery mechanism, and a clearer risk stratification structure. In this process, what can transcend cycles will no longer be simple trading skills, but a profound understanding of market laws and rational judgment.
Reporter: Wang Cheng
Editor: Wang Cheng
Chief Editor: Fu Shanshan

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Recently, the three major stock exchanges in Shanghai, Shenzhen, and Beijing publicly solicited opinions on the revision of trading rules and introduced a series of institutional optimization measures, with key terms being relaxation, introduction, and constraint. The Shanghai and Shenzhen Stock Exchanges have raised the price fluctuation limit for main board ST stocks from 5% to 10% to improve liquidity and avoid false prosperity. The Shenzhen Stock Exchange has introduced a market maker system aimed at addressing the uneven liquidity issue in the ChiNext. The Beijing Stock Exchange emphasizes regulation to promote market maturity and clear stratification

Prudent Balance Between "Active Market" and "Risk Prevention" in A-shares