Analysis of A-share Market '11 Consecutive Limit-up' Speculation Phenomenon

Based on existing materials, I will provide you with a systematic analysis of the ‘11 consecutive limit-up’ speculation phenomenon in the A-share market. Since real-time market data for this specific stock cannot be obtained, the following analysis is based on public information and market research literature.

refers to the extreme market phenomenon where a stock hits the daily limit price for 11 consecutive trading days. Between 2024-2025, multiple such cases occurred in the A-share market, including:

• Shengtong Energy (001331)
  : Share price soared to 42.10 yuan, hitting the daily limit for 11 consecutive trading days
• Bainaqiancheng (300291)
  : Single-day gain of 20.08%
• *
  ST Dongyi (002713)
  : Share price soared from 10.45 yuan to 18.60 yuan before plummeting sharply

Such phenomena are usually accompanied by:

• Abnormal surge in trading volume
• Share price significantly deviating from fundamentals
• Frequent appearance of hot money seats on the Dragon and Tiger List

provided the capital foundation for market speculation. In November 2025, the People’s Bank of China announced an injection of in liquidity, significantly improving the market’s funding conditions.

Chinese retail investors are regaining risk appetite, but such investors usually lack patience and tend to engage in short-term speculative trading. Research shows that retail investors’ reactions to market changes are often emotional, and they are easily influenced by market hotspots and short-term news.

has become an important catalyst:

• Artificial Intelligence (AI)
  -related concepts
• Clean Energy
  and new energy technologies
• Digital Economy
  transformation themes

These concepts provide hot money with ‘stories’ and ‘imaginative space’ for speculation.

shows that stocks with consecutive daily limits are often accompanied by active entry and exit of hot money seats. Hot money usually adopts the following strategies:

• Quickly pulling daily limits to attract market attention
• Taking advantage of retail investors’ ‘FOMO’ (fear of missing out) psychology
• Gradually distributing chips at high levels

A-share’s

(20% for the ChiNext Board) may intensify speculation in certain situations:

• Daily limit restricts liquidity
  , causing supply-demand imbalance
• Consecutive daily limits form a ‘technical uptrend’
  , attracting technical followers
• T+1 trading system
  limits the ability to sell on the same day

According to research data, stocks that have experienced multiple consecutive limit-ups often face severe

:

• P/E ratio far exceeds the industry average
• Share price deviates from company fundamentals
• Rises without performance support are unsustainable

Historical cases show that most consecutive limit-up stocks will experience

after speculation ends, with some stocks falling by more than 50%.

is a major uncertainty factor:

• Stocks cannot be traded during suspension
• May face catch-up declines after resumption
• Institutional investors may take the opportunity to escape

brings policy risks:

• Abnormal transactions will be monitored
• Malicious manipulation will face penalties
• Listed companies may face inquiries and investigations

Research shows that retail investors are often in a

position in consecutive limit-up speculation:

• Insider trading risk
  : Some funds may obtain information in advance
• Manipulation risk
  : Hot money may create false trading volume through ‘wash trading’
• Chasing high risk
  : Retail investors often buy at high levels

mainly include:

• Consecutive daily limits for a certain number of days trigger abnormal movement verification
• Listed companies need to apply for suspension and issue announcements
• Regulatory authorities conduct compliance reviews of trading behaviors

1. Obvious short-term cooling effect
   • Suspension cuts off continuous trading during the period
   • Warns other speculative funds
   • Provides investors with a ‘cooling-off period’

2. Improved information disclosure
   • Mandatory disclosure of reasons for abnormal fluctuations
   • Prompt investment risks
   • Increase market transparency

3. Deter manipulation behaviors
   • Deters abnormal trading accounts
   • Reduces malicious speculation

1. Treating symptoms but not the root cause
   • Speculation may resume after suspension ends
   • Hot money may shift to other targets
   • Fails to address the fundamental speculative motivation

2. Time lag
   • Often intervenes only after share prices have risen sharply
   • Retail investors may have already bought at high levels
   • Misses the best intervention opportunity

3. Regulatory arbitrage
   • Funds may shift to other non-suspended targets
   • Speculation models rotate among markets

4. International comparison perspective
   • When the U.S. SEC faces a government shutdown, only a very small number of personnel (about 400 people, equivalent to 10% of the total) are retained for emergency law enforcement
   • Illustrates the contradiction between limited regulatory resources and market complexity

• Improve monitoring sensitivity and intervene in abnormal transactions earlier
• Strengthen coordinated supervision with exchanges
• Implement ‘precision strikes’ on abnormal accounts

• Improve the design of the price limit system
• Strengthen investor education and risk prompts
• Develop institutional investors and improve investor structure
• Improve short-selling mechanisms and provide market-based checks and balances tools

• Treat short-term surges rationally
• Focus on company fundamentals and long-term value
• Avoid ‘chasing up and killing down’

• Listed companies frequently issue risk prompts after consecutive daily limits
• Dragon and Tiger List shows concentration of well-known hot money seats
• Share price significantly deviates from the industry average valuation level

• Set stop-loss levels
• Control the position of a single stock
• Avoid using leverage to invest in such stocks

1. Optimize the price limit system
   • Consider introducing a ‘cooling-off period’ mechanism
   • Implement dynamic price limit restrictions on stocks with consecutive daily limits

2. Strengthen transaction supervision
   • Strengthen real-time monitoring of abnormal transactions
   • Increase penalties for manipulation behaviors
   • Improve cross-market joint supervision mechanisms

3. Investor education
   • Strengthen risk warning publicity
   • Improve investors’ risk awareness
   • Popularize the concept of value investment

The ‘11 consecutive limit-up’ speculation phenomenon in the A-share market is the result of

, including abundant liquidity, retail investor sentiment, theme speculation, and game between hot money and institutions. Such phenomena contain huge investment risks, and retail investors should remain vigilant.

have a certain cooling effect in the short term, but their effectiveness is limited in the long term. They need to be combined with other system improvements to fundamentally curb speculative speculation.

should be:

• Improve market system design
• Strengthen regulatory coordination
• Improve investor quality
• Develop institutional investors

Only through comprehensive governance with multiple measures can we effectively prevent such speculative risks, protect the legitimate rights and interests of investors, and promote the healthy and stable development of the capital market.

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[1] Securities Times - ‘The speculation logic behind Shengtong Energy’s 11 consecutive limit-ups’ (online search data)
[2] Securities Times - ‘Statistics and analysis of A-share consecutive limit-up stocks in 2024’ (online search data)
[3] Reuters - ‘China Eyes Curbs on Stock Speculation to Foster Steady Gains’ (https://www.reuters.com/business/china-eyes-curbs-stock-speculation-steady-gains-2025-09-04/)
[4] MarketWatch - ‘Speculative trading is booming. That may later be a drag on stocks’ (https://www.marketwatch.com/story/speculative-trading-is-booming-again-that-could-turn-into-a-headwind-for-the-s-p-500-says-goldman-sachs-3cff9459)
[5] Reuters - ‘Chinese savers are a booming stock market’s next catalyst’ (https://www.reuters.com/business/finance/chinese-savers-are-booming-stock-markets-next-catalyst-2025-08-27/)
[6] Reuters - ‘Prolonged US government shutdown could raise market risks’ (https://www.reuters.com/business/prolonged-us-government-shutdown-could-raise-market-risks-2025-10-02/)
[7] Al Jazeera - ‘India’s ban on Jane Street raises concerns over regulator role’ (https://www.aljazeera.com/economy/2025/7/18/indias-ban-on-jane-street-raises-concerns-over-regulator-role)

Since real-time market data for Shengtong Energy (001331.SZ) cannot be obtained, this analysis is based on public online materials and market research literature. Investors should obtain the latest and most accurate market data before making investment decisions.