Core Insights - On October 9, the first trading day after the National Day holiday, SMIC (688981) faced a significant drop in its margin financing ratio from 0.7 to 0 due to its static P/E ratio reaching the 300 times threshold, alongside other high-valuation stocks like Baiwei Storage (308.97 times) and Luqiao Information (947.11 times) [5][25] - This adjustment is not a temporary policy or specific to SMIC, but rather a routine operation by brokerages based on rules implemented by the Shanghai and Shenzhen Stock Exchanges since 2016, which mandates that stocks with a static P/E ratio exceeding 300 or negative must have their financing ratio set to zero [5][25] Group 1: Key Concepts - Static P/E Ratio: This is a valuation metric calculated as the stock's closing price divided by the earnings per share from the most recent audited fiscal year. A static P/E ratio of 300 means that if future earnings remain constant, it would take 300 years for investors to recoup their investment [8] - Financing Ratio: This refers to the "collateral discount" applied by brokerages when investors use stocks as collateral for margin financing. A financing ratio of 0 means the stock can no longer be used as collateral for borrowing [10] Group 2: Current A-Share High P/E Club Overview - As of October 9, there are 282 stocks in the market with a static P/E ratio exceeding 300, with some, like Yian Technology, surpassing 10,000 times [15] - There are 22 stocks in the 280-300 P/E range, which are considered "critical stocks" that investors should monitor closely, as price increases or profit declines could easily push them over the 300 times threshold [16] Group 3: Market Reactions to Financing Ratio Adjustments - The adjustment of financing ratios is a standard market operation, and investors should not panic excessively. The reduction in financing ratio directly impacts the available margin for investors holding these stocks, leading to a decrease in their usable margin [21] - The adjustment does not equate to the removal of the stock from margin financing eligibility. Investors may still be able to finance purchases of the stock if they meet other brokerage requirements, although the reduction in available margin may limit new financing opportunities [22] - The adjustment does not automatically trigger margin calls unless the overall collateral ratio falls below the maintenance threshold, which is typically set at 130% [23]