This afternoon, some investors reported receiving text messages from East Money Securities stating that starting October 9th, the collateral ratio for SMIC (688981) held in margin accounts would be adjusted from 0.70 to 0.00, while the collateral ratio for Biwin Storage (688525) would be adjusted from 0.50 to 0.00. What is the reason behind this?
When contacted, East Money Securities customer service confirmed this information. The representative pointed out that according to exchange regulations, if a stock’s static price-to-earnings ratio exceeds 300 times or is negative, the margin trading collateral ratio will be adjusted to zero. Both of these stocks have static P/E ratios exceeding 300 times.
This regulation has been in effect since 2016 and remains unchanged. Although some stocks were adjusted in July 2025, the core rules remain the same, aimed at strengthening risk control and ensuring the stable operation of margin trading business.
East Money Securities
East Money Securities is a leading Chinese financial services company founded in 2005, primarily known for its popular online platform “Eastmoney.com.” It provides comprehensive financial data, news, and brokerage services, playing a significant role in China’s retail investing landscape. The company has grown to become one of the most influential financial information providers in the country.
SMIC
SMIC (Semiconductor Manufacturing International Corporation) is a major Chinese semiconductor foundry company, founded in Shanghai in 2000. It was established with government support to advance China’s domestic chip manufacturing capabilities and has grown to become one of the world’s leading semiconductor producers. The company plays a strategic role in the global technology supply chain and in China’s efforts to develop a self-reliant semiconductor industry.
Biwin Storage
I am unable to provide a summary for “Biwin Storage” as it does not appear to be a recognized historical place, landmark, or cultural site. Biwin is a technology company that manufactures computer memory and storage devices, rather than a physical location with a public history for tourism or cultural significance.
