Sou Hu Cai Jing·2025-10-11 16:17Core Viewpoint - The adjustment of margin financing rates to zero for SMIC and BAWI Storage has significant implications for investors, cutting off leverage and potentially leading to increased volatility in stock prices [1][3][5]. Group 1: Impact on Stocks - SMIC's static P/E ratio reached 303, while BAWI Storage's was 301, triggering the margin financing rate adjustment as per the rules set by the exchanges [3]. - Following the announcement, SMIC's stock experienced a volatility of over 11%, with a trading volume exceeding 24.2 billion yuan [3]. - A total of 203 stocks were affected by this adjustment, predominantly in the technology sector due to high valuations [3]. Group 2: Market Reactions - The adjustment directly severed the "leverage supply" for high-valuation stocks, which previously had margin rates between 30% to 100% [5]. - The financing balance for SMIC surged from 7.5 billion yuan to 15 billion yuan within two months, indicating a significant influx of leveraged funds that may now face withdrawal [5]. - The semiconductor sector faced a broader sell-off, with leading companies like CATL experiencing significant declines [7]. Group 3: Broader Economic Context - The Ministry of Commerce announced export controls on various materials, including rare earths and lithium batteries, effective November 8, indicating a strategic shift from raw material exports to finished product exports [5]. - The retail sector showed signs of growth, with a reported 7.9% year-on-year increase in social retail sales, although consumer spending patterns are shifting towards more experiential purchases [7]. - The overall market sentiment was affected by external factors, including foreign capital withdrawal and tightening global liquidity, leading to a significant drop in major indices [9].