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1. Circuit breakers: In China, there are circuit breakers that halt trading temporarily when the market moves a certAIn percentage either up or down. This mechanism helps to prevent drastic drops in stock prices.
2. Market sentiment: Whether a stock hits the limit down or not depends on the overall market sentiment and the demand for that particular stock. If investors believe that the stock has value and are willing to buy even during a market downturn, the stock might not hit the limit down.
3. Liquidity: Stock prices can fall rapidly when there is a lack of liquidity or buyers in the market. If there is enough liquidity, however, the stock might continue to trade without hitting the limit down.
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