The Shanghai Stock Exchange has adjusted the limits of the circuit breaker mechanism for new stocks in their first day of trading, Yicai.com reported.

According to the new rule, during the continuous auction stage on the first day of listing, SSE will temporarily suspend the trading of new stocks whose intraday trading prices rise or fall more than 10% compared with the opening price of the day.

However, the SSE will no longer apply the temporary trading suspension on those stocks whose intraday trading price rose or fell more than 20% from the opening price of the day.

Also, the new rule requires that investors’ declared prices should meet certain requirement on the first day of listing.

In the call auction stage when the market opens, the effective declared price shall not exceed 120% of the issue price and shall not be less than 80% of the issue price.

While during the continuous auction, trading suspension period and the call auction before market closes, the effective declared price shall not exceed 144% of the issue price and shall not be less than 64% of the issue price.