Feng Huang Wang·2025-10-09 11:46Core Viewpoint - The adjustment of margin financing rates to zero for certain stocks, including SMIC and Bawen Storage, has attracted significant market attention, reflecting regulatory compliance and risk control measures in the financing and securities industry [1][2][10]. Group 1: Margin Financing Rate Adjustments - On October 9, 2023, the margin financing rates for SMIC (688981) and Bawen Storage (688525) were adjusted from 0.7 and 0.5 to 0.00, respectively [1][2]. - This adjustment is in accordance with exchange regulations that mandate a zero financing rate for stocks with a static P/E ratio exceeding 300 or negative [2][10]. - The adjustment is a common practice across the industry, with over 1,000 stocks currently having a financing rate of zero due to similar conditions [2][15]. Group 2: Market Reactions and Stock Performance - Following the adjustment, the semiconductor sector experienced significant volatility, with SMIC showing a daily fluctuation of over 11% [7]. - On the adjustment day, SMIC's stock price fluctuated between a high of 153 CNY and a low of 138.91 CNY, with a closing drop of 0.87% [7][15]. - The ChiNext 50 Index was also affected, initially rising by 6.19% before closing with a smaller gain of 2.93% [9]. Group 3: Regulatory Framework - The rules governing the adjustment of margin financing rates have been in place since December 2016, aimed at enhancing risk control in the financing and securities market [10][15]. - The core logic of these regulations is to limit leverage on stocks with high valuations while allowing it for those with lower valuations, thereby managing business risks effectively [15].