The operator of the Hong Kong stock exchange is seeking feedback on proposals to widen the use of price volatility curbs. Illustration: SCMP

‘Fat finger’ blunders causing sudden stock price volatility in Hong Kong may end with cool-off time curbs

  • Exchange operator looking at sixfold increase in stocks that can be halted after rapid price change
  • Asia’s third largest market moving more toward US style of responding to huge price swings
Topic |   HKEX

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The operator of the Hong Kong stock exchange is seeking feedback on proposals to widen the use of price volatility curbs. Illustration: SCMP
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On May 22, 1989 Hong Kong stock prices suffered their heftiest one-day fall since the 1987 crash as waves of panic selling, prompted by the political crisis in China, swept through the local stock market. Pictured are anxious investors watching share prices plunge. Photo: SCMP

Hong Kong stock exchange moves to embrace volatility curbs to protect against ‘fat finger’ mistakes, big share price swings

  • Hang Seng Index dropped 33.33 per cent on a single day on ‘Black Monday’, October 19, 1987
  • Hong Kong exchange now looking at greatly expanding number of stocks under volatility curbs
Topic |   HKEX

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On May 22, 1989 Hong Kong stock prices suffered their heftiest one-day fall since the 1987 crash as waves of panic selling, prompted by the political crisis in China, swept through the local stock market. Pictured are anxious investors watching share prices plunge. Photo: SCMP
READ FULL ARTICLE