Mei Ri Jing Ji Xin Wen·2025-10-09 23:05Core Viewpoint - The adjustment of margin financing rates for certain stocks, including SMIC, to zero is a result of new regulations from the Shanghai and Shenzhen Stock Exchanges, which state that stocks with a static P/E ratio above 300 or negative earnings will have a margin financing rate of zero [1][3]. Group 1: Regulatory Changes - The Shanghai and Shenzhen Stock Exchanges revised the "Margin Financing and Securities Lending Implementation Rules" in 2023, specifying that stocks with a static P/E ratio over 300 or negative earnings will have a margin financing rate of 0% [3]. - As of September 30, 2023, SMIC's static P/E ratio exceeded 300, leading to the adjustment of its A-share margin financing rate to zero [1][3]. Group 2: Impact on Investors - Investors holding stocks with a margin financing rate reduced to zero may face challenges in continuing margin trading, as they might need to provide additional collateral or liquidate some assets to maintain their margin requirements [3][4]. - A representative from a leading brokerage indicated that existing positions would not be forcibly liquidated due to the zero rate, but new positions cannot be opened until the rate changes [4]. Group 3: Comparison with Hong Kong Market - In contrast to the A-share market, the Hong Kong market allows brokers to set their own margin financing rates, which can vary significantly between different brokers [4][7]. - Stocks in the Hong Kong market, even with a static P/E ratio above 300, such as Huahong Semiconductor, can still be used as collateral for financing, with initial margin rates ranging from 50% to 60% [7][8].