The Hong Kong Stock Exchange has introduced a volatility control mechanism to the Shanghai-Hong Kong Stock Connect. It allows investors from Hong Kong and the Chinese mainland to trade certain stocks on each other's markets.

The HKEX said starting today (Monday), 81 Hong Kong stocks will be subjected to the new system, which will impose a 5-minute trading limitation if a stock's price moves over 10 percent on either direction. The mechanism does not apply to the first and last 15 minutes of trading. Analysts say the move is aimed at reducing risks, especially human error.

"There were no daily trading limits in the Hong Kong market. So this 5-minute trading limit can reduce the risks of things like accidentally placing the wrong amount of buy or sell orders. So this mechanism can control systemic risks," Investment consultant Zhou Xiabing said.