Trading Halts Hit Major Tech Stocks as Prices Surge
The trading session on July 31 witnessed significant volatility across Asian markets. On the Tokyo Stock Exchange, shares of memory chip maker Kioxia and investment conglomerate SoftBank Group soared to their daily limit-up prices. This sharp move automatically triggered temporary trading halts, suspending all transactions in these stocks.
A similar scenario unfolded on the Shanghai Stock Exchange. Shares of Chinese chip designer GigaDevice also hit the exchange-imposed limit-up during the day, leading to a trading pause. The simultaneous surge and subsequent suspension of multiple high-profile technology companies drew immediate market attention.
Platform Activates Contingency Plan with Internal Pricing
In response to the trading suspensions at the underlying exchanges, the connected trading platform swiftly implemented its contingency protocol. An official announcement confirmed that the affected stocks have been switched to an "internal pricing mode."
This mode will remain active until the primary exchanges resume normal trading, which is expected after the weekend. The primary function of internal pricing is to provide a continuous and orderly quotation and trading environment when official channels are disrupted, thereby preventing market disorder caused by a sudden lack of liquidity.
Price Discovery Rules Maintain Market Stability
According to the platform's operational details, the internal pricing process involves differentiated price discovery resets for the specific assets. For Kioxia and SoftBank Group, the price discovery band will be reset twice, while for GigaDevice, it will be reset once.
A key point is that the volatility band for these price discovery resets will remain unchanged at 10%. This means the platform maintains a cap on single-adjustment price movements even under the internal mechanism, aiming to control risk and prevent extreme, non-fundamental price jumps during discontinuous trading periods.
The platform has directed users to its official documentation for comprehensive details on the internal pricing mechanism's algorithms, trigger conditions, and execution procedures. The activation of this plan underscores the proactive risk management measures embedded within trading infrastructures to handle periods of extreme market volatility.