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Article 8
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The expression "an irregularity in the cumulative percentage of increase or decrease in the closing price and a significant increase in the long/short ratio during the most recent period" as used in Article 4, paragraph 1, subparagraph 7 of the Directions shall mean that the particular security simultaneously meets each of the following conditions on a given day:
- The cumulative percentage of increase or decrease in the closing price of a security for the most recent 6 business days (inclusive of the given day) is greater than 25 percent, and differs with the average values for both the market as a whole and for same-sector securities, as calculated in accordance with this subparagraph, by 20 percent or more.
- The long/short ratio on the business day preceding the given day is 20 percent or more and meets both of the following conditions:
- A margin utilization rate of 25 percent or above.
- A stock loan rate of 15 percent or above.
- The long/short ratio on the business day preceding the given day is larger than the lowest long/short ratio of the most recent 6 business days (counting from the business day preceding the given day) by a factor of four or more.
Exceptions to the preceding paragraph are as follows:
- The percentages of increase or decrease in the closing prices of newly-listed ordinary shares during the period in which no price fluctuation limit is imposed shall not be included in the calculation of the standards under the preceding paragraph.
- When non trade-related factors (such as ex-rights or ex-dividend factors) have caused fluctuations in the price of a security during the period for which standards under the preceding paragraph are calculated, those factors shall be excluded when calculating the percentage of increase or decrease in the closing price or the closing index.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when there are fewer than five securities in a given sector.
- The provisions of the preceding paragraph regarding same-sector securities shall not apply when a security has a negative price-to-earnings ratio or is trading at 60 times earnings or above.
- The long/short ratio on the business day preceding the given day is lower than the long/short ratio on the business day 2 days prior to the given day.
- The standards in the preceding paragraph shall not apply if the percentage of premium or discount of the securities announced through the MOPS for the preceding business day meets one of the following conditions:
- It does not exceed 10 percent.
- The direction of movement is opposite that of the standard increase or decrease under the preceding paragraph.
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