Core Viewpoint - The article emphasizes that the leverage ratios in brokerage financing are a result of institutional regulations rather than subjective decisions by platforms, highlighting the importance of understanding the underlying mechanisms that determine these ratios [1][12]. Summary by Sections Leverage Ratios and Institutional Framework - Leverage in brokerage financing is constrained by a margin ratio system, with a common maximum leverage of 2 times, indicating a trend towards stability within the industry [3][4]. - Different brokerages, such as Citic Securities and Hengxin Securities, exhibit minor differences in financing leverage due to these regulatory frameworks [3]. Characteristics of Different Structures - Real trading platforms allow for more flexible leverage ranges, supported by diverse risk control mechanisms tailored to specific structural characteristics [5][6]. - The transparency of the funding path is crucial for high leverage to exist, as it isolates risks effectively [7]. Key Indicators for Safety - The safety of leverage is determined by three main indicators: the setting of risk control thresholds, the automation of risk control, and the existence of a verifiable trading chain [8][9]. - A lower risk tolerance or novice investors are advised to use conservative leverage (1 to 1.5 times), while more experienced investors may opt for higher leverage based on their trading strategies [10][12]. Risk Control and Transparency - Effective risk control mechanisms include public warning lines and risk lines, with a typical warning line around 70% and a risk line around 80% [11]. - The article suggests that the safety of leverage is contingent upon meeting specific criteria related to transparency, automation, and verifiability of transactions [13].

Core Insights - The article discusses leveraged financing as a trading model that amplifies investment scale through borrowed funds, highlighting its core feature of "credit amplification" [1] - The market size for compliant leveraged financing is projected to reach 1.8 trillion yuan by 2025, with institutional and individual investors accounting for 60% and 40% respectively [1] Key Elements Analysis - The leverage ratio is determined by the margin requirement, with a minimum of 50% for main board stocks (2x leverage) and 60% for the ChiNext board (1.67x) [2] - The maintenance guarantee ratio is a critical risk threshold, with a formula to calculate it; if it falls below 130%, additional margin is required to avoid forced liquidation [2] - Interest costs are calculated daily, with an annualized rate of 6%-7.5%; for a 1 million yuan financing position held for one month, interest would be approximately 5,000-6,250 yuan [2] Main Types and Compliance Boundaries - Compliant leveraged financing includes broker financing and margin trading, with around 1,800 designated "financing targets" [3] - The balance of broker financing is expected to reach 1.2 trillion yuan by 2025, while structured leveraged financing aimed at institutional investors is projected to be around 600 billion yuan [3] - Illegal leveraged financing primarily involves off-market funding with leverage ratios of 3-10x, lacking regulatory oversight [3] Operational Process Details - Risk assessment is conducted to confirm risk tolerance, with conservative investors advised to use leverage of 1.2x or less [5] - Margin preparation involves transferring cash or securities that can be used as collateral; a 500,000 yuan margin can secure an additional 500,000 yuan under 2x leverage [5] - The selection of financing targets should prioritize high liquidity stocks, with a significantly lower forced liquidation rate compared to small-cap stocks [5] Core Differences with Other Financing Methods - Leveraged financing increases investment scale by 1-2 times, with both returns and risks amplified; under similar market conditions, leveraged trading returns are 1.8 times that of self-funded trading, after interest deductions [6] - Compliant leveraged financing is regulated and has lower leverage ratios compared to off-market funding, which is unregulated and carries higher risks [6] - Unlike equity financing, leveraged financing does not require giving up ownership rights but incurs interest costs, catering to different investment needs [6]