In-Depth Analysis of the Abnormal Stock Price Fluctuation Mechanism for A-Listed Companies — Taking the Consecutive Limit-Up Event of Leo Group (002131.SZ) as an Example

Based on the collected data, I will provide you with a systematic and comprehensive analysis report.

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Leo Group (002131.SZ) recorded a cumulative closing price deviation of

over 10 consecutive trading days from December 31, 2025 to January 15, 2026, triggering the severe abnormal fluctuation criteria of the Shenzhen Stock Exchange (SZSE) [0][1][2]. The company suspended trading for verification starting January 16, 2026, with the expected suspension period not exceeding 3 trading days.

Indicator	Data
Statistical Period	December 1, 2025 - January 15, 2026
Initial Price	5.12 CNY
Closing Price	10.40 CNY
Cumulative Increase During the Period	+103.12%
Highest Price	10.40 CNY
Lowest Price	4.87 CNY
Price Amplitude	+111.81%
Average Daily Trading Volume	580 million shares
20-Day Moving Average	6.39 CNY
P/E Ratio (TTM)	138.06x
P/B Ratio	5.10x

Jinling API Market Data

According to the Announcement on Abnormal Stock Trading Fluctuation [3] released by Leo Group on January 15, 2026, the company clearly states:

1. Normal Operations
   : There is no need to correct or supplement the information previously disclosed by the company
2. No Undisclosed Material Matters
   : The company, its controlling shareholder, and actual controller have no material matters that should be disclosed but have not been disclosed
3. Stable External Environment
   : The company’s operations have been normal recently, and there have been no major changes in internal and external operating environments
4. No Abnormal Transactions by Senior Management
   : During the period of abnormal stock fluctuation, the controlling shareholder and actual controller did not buy or sell the company’s shares

The company also issued a risk warning: According to data from China Securities Index Co., Ltd., the P/B ratio of the “Business Services” industry to which the company belongs is 2.37x, and the rolling P/E ratio is 34.10x, while Leo Group’s latest P/B ratio is

and rolling P/E ratio is , which are significantly higher than the industry average [3].

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According to the Shenzhen Stock Exchange Trading Rules (2023 Revision) [4][5], A-share abnormal stock price fluctuations are divided into two levels:

Securities Type	Trigger Condition	Deviation Threshold
Main Board Stocks/Closed-End Funds	3 Consecutive Trading Days	Cumulative Deviation of ±20%
ChiNext Stocks	3 Consecutive Trading Days	Cumulative Deviation of ±30%
*ST/ST Main Board Stocks	3 Consecutive Trading Days	Cumulative Deviation of ±12%

Trigger Condition	Deviation/Frequency Threshold
Main Board: 4 consecutive abnormal fluctuations in the same direction within 10 trading days	-
ChiNext: 3 consecutive abnormal fluctuations in the same direction within 10 trading days	-
10 Consecutive Trading Days cumulative closing price change deviation reaches	+100% / -50%
30 Consecutive Trading Days cumulative closing price change deviation reaches	+200% / -70%
Other circumstances recognized by the CSRC/Exchange	-

Note

: Leo Group’s cumulative deviation over 10 consecutive trading days reached 96.77%, close to the 100% threshold for severe abnormal fluctuations [1][4].

According to the Shenzhen Stock Exchange Self-Regulatory Guidelines for ChiNext Listed Companies No. 2 [4], when a listed company’s stock experiences abnormal fluctuations/severe abnormal fluctuations, it must fulfill the following obligations:

1. Verification of Concerned Issues
   : Verify the following matters
   • Whether the previously disclosed information needs to be corrected or supplemented
   • Whether recent public media have reported material undisclosed information related to the company
   • Whether there have been major changes in the company’s operating environment
   • Whether there are material matters that should be disclosed but have not been disclosed

2. Information Disclosure Obligations
   • Release the Announcement on Abnormal Stock Trading Fluctuation within the specified time
   • The announcement must be confirmed by all members of the board of directors
   • Independent directors need to issue independent opinions (if applicable)

3. Risk Warnings
   • Explain the differences between P/E ratio, P/B ratio and industry averages
   • Prompt that the stock price has seriously deviated from the company’s fundamentals
   • Remind investors to invest rationally and pay attention to risks

A listed company may apply for suspension for verification under the following circumstances:

• Cumulative closing price change deviation reaches +100% within 10 consecutive trading days [4]
• The stock price seriously deviates from fundamentals and cannot be reasonably explained
• There are risks of overheated market sentiment and irrational speculation

Trigger Suspension Conditions → Company Applies for Suspension → Exchange Approves → Suspension for Verification (≤3 trading days)
     ↓
Verification Completed → Announce Verification Results → Resume Trading

Company	Suspension Date	Cumulative Increase During the Period	Trigger Reason
Fenglong Co., Ltd.	2026.1.14	213.97% (12 consecutive limit-ups)	Consecutive limit-ups, serious deviation from fundamentals
E-Point World	2026.1.15	>100% (9 consecutive limit-ups)	Cumulative deviation exceeds 100%
Guosheng Technology	2026.1.7-1.12	Multiple limit-ups	Triggered abnormal fluctuations multiple times
Jamay Packaging	2026.1.7-1.12	323.46%	Severe abnormal fluctuation

Data Source: [2][6][7]

According to the Shenzhen Stock Exchange Real-Time Monitoring Rules for Abnormal Transactions of Main Board Stocks [5], the exchange may take the following regulatory measures:

Type of Measure	Specific Content
Self-Regulatory Measures	Oral warning, written warning, interview request, requirement to submit written commitment
Account Management	Include securities accounts in key monitoring accounts
Trading Restrictions	Suspend intraday trading for the day, restrict trading after hours
Information Disclosure	Publish classified transaction statistics of investors during the period of severe abnormal fluctuations

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• Inability to Trade
  : Investors cannot sell and liquidate their held stocks during the suspension period
• Capital Lock-Up
  : Investors who purchased on margin may face margin call pressure
• Opportunity Cost
  : Funds cannot be deployed for other investment opportunities

According to historical cases, stocks that resume trading after suspension and verification usually face the following trends:

Situation	Possible Outcome	Investor Response
No Abnormalities Found in Verification	Possible compensatory decline	Pay close attention to market movements and operate cautiously
Problems Found in Verification	Stock price may drop sharply	Consider stop-loss or holding for a rebound
Overheated Market Sentiment	Increased short-term volatility	Avoid chasing gains and selling on dips

According to recent announcements from multiple listed companies [2][6][7], regulatory authorities require listed companies to focus on the following risk warnings:

Industry Average P/E Ratio: 34.10x
Leo Group P/E Ratio: 137.47x
Valuation Difference Multiple: 4.03x

• The short-term increase in stock price has seriously deviated from the company’s fundamentals [6]
• There are situations of overheated market sentiment and irrational speculation [7]
• The “pass the parcel” effect is obvious, and there is a risk of a sharp decline at any time [6]

• There have been no major changes in the main business [3]
• Some companies are in a loss-making state (e.g., Guosheng Technology) [6]
• New businesses are still in the investment phase and cannot generate revenue in the short term [7]

Early Warning Signal	Implication
More than 5 consecutive limit-up days	May trigger abnormal fluctuation monitoring
Abnormally high turnover rate	Frequent capital inflows and outflows, need to be vigilant
Company frequently releases risk warnings	Management believes the stock price has deviated from a reasonable range
P/E/P/B ratio significantly higher than industry average	Risk of valuation bubble

1. View Theme Concepts Rationally
   : Recently, tracks such as commercial aerospace and artificial intelligence have been favored by capital, but it is necessary to distinguish between actual business operations and concept speculation [6]

2. Focus on Company Fundamentals
   : Focus on the company’s core value, avoid operating solely based on technical indicators or news

3. Control Position Risk
   : For stocks with excessive cumulative increases, reduce positions or take profits

4. Pay Attention to Announcements in a Timely Manner
   : Announcement information before and after suspension and verification is crucial for investment decisions

5. Avoid Chasing Gains and Selling on Dips
   : Sharp fluctuations may occur after suspension and resumption of trading, so emotional operations should be avoided

Fu Yifu, a special researcher at Suzhou Commercial Bank, analyzed [6] that the intensive release of abnormal stock price fluctuation announcements by A-share listed companies sends multiple signals:

Signal Type	Specific Content
Rising Market Heat	Speculation on popular themes is heating up, with capital flocking to them
Tighter Regulation	Exchanges have increased monitoring and inquiry efforts to maintain market fairness and order
Increased Risk Warnings	Proactive disclosure by listed companies is a self-protection measure to avoid regulatory accountability
Investor Education	Guide small and medium-sized investors to be alert to the risk of pullback after the ebb of short-term speculation

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Company	Cumulative Increase During the Period	Verification Result	Performance After Resuming Trading
Guosheng Technology	Multiple limit-ups	P/B ratio significantly higher than industry, with obvious bubble characteristics	Continued to rise after resuming trading (short-term) [6]
Jamay Packaging	323.46%	Uncertainty in control change, risk of irrational speculation	Continued to rise after resuming trading [6]
China Satellite Communications	Consecutive limit-ups	Stock price has reached a historical high, deviating from fundamentals	Limit-down after resuming trading [6]

As a company in the machinery manufacturing industry, Leo Group’s consecutive limit-ups have certain specific characteristics:

1. Industry Attribute
   : The company belongs to the industrial-machinery industry, which is not a hot theme sector
2. Limited Fundamental Support
   : TTM net profit margin is only 2.47%, ROE is 3.74% [0]
3. Significantly Overvalued
   : 138x P/E ratio far exceeds the industry average of 34x [3]
4. No Material Positive Announcements
   : The company clearly stated that there are no matters that should be disclosed but have not been disclosed [3]

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1. Effective Regulatory Mechanism
   : The A-share abnormal fluctuation regulatory mechanism is operating normally, and can identify and handle abnormal stock price fluctuations in a timely manner
2. Necessary Suspension and Verification
   : Suspension and verification can provide a cooling-off period for the market to prevent the spread of irrational speculation
3. Sufficient Risk Release
   : Stocks with cumulative increases exceeding 100% have high levels of valuation risk and pullback risk
4. Investors Need to Be Rational
   : When facing stocks with abnormal fluctuations, investors should remain calm and focus on the company’s fundamentals rather than short-term price fluctuations

Investor Type	Recommendations
Investors with Existing Positions	Pay attention to resumption announcements, decide whether to continue holding after evaluating risks
Investors with No Positions	Avoid chasing highs, wait for the stock price to return to fundamentals before considering entry
Short-Term Investors	Strictly set stop-loss and take-profit levels, avoid excessive speculation
Long-Term Investors	Focus on the company’s core value, ignore short-term price fluctuations

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[0] Jinling API Market Data - Leo Group (002131.SZ) Stock Price and Financial Data

[1] Sina Finance - “E-Point World: Severe Abnormal Stock Trading Fluctuations, Suspended for Verification” (https://finance.sina.com.cn/jjxw/2026-01-14/doc-inhhhxni8128164.shtml)

[2] Securities Times Network - “E-Point World: Will Verify Stock Trading Fluctuations, Suspended Starting January 15” (https://www.stcn.com/article/detail/3593498.html)

[3] Leo Group Co., Ltd. - “Announcement on Abnormal Stock Trading Fluctuation” (http://static.cninfo.com.cn/finalpage/2026-01-15/1224934676.PDF)

[4] Shenzhen Stock Exchange - “Self-Regulatory Guidelines for ChiNext Listed Companies No. 2” (https://docs.static.szse.cn/www/lawrules/service/share/W020250606598931204942.pdf)

[5] Shenzhen Stock Exchange - “Real-Time Monitoring Rules for Abnormal Transactions of Main Board Stocks” (http://docs.static.szse.cn/www/lawrules/rule/stock/trade/W020230217570611262391.pdf)

[6] Beijing News Shell Finance - “First Seven Days of A-Shares: From ‘Consecutive Limit-Up’ Frenzy to Suspension for Self-Inspection — Who is ‘Speculating’ and Who is ‘Cooling Off’?” (https://www.bjnews.com.cn/detail/1768314123129734.html)

[7] Securities Times Network - “AI Blue-Chip Stock Suspended for Verification! Multiple A-Shares Issue Urgent Risk Warnings!” (https://www.stcn.com/article/detail/3593540.html)