The Shanghai and Shenzhen Stock Exchanges increase the proportion of margin requirements for financing.

On January 14th, approved by the China Securities Regulatory Commission, the Shanghai and Shenzhen Stock Exchange issued a notice adjusting the margin ratio for margin trading, increasing the minimum margin ratio for investors when buying securities on margin from 80% to 100%. In August 2023, the Shanghai and Shenzhen Stock Exchange reduced the margin ratio from 100% to 80%, and the margin trading scale and transaction volume steadily increased. Recently, margin trading has been significantly active, market liquidity is relatively abundant, in accordance with the statutory countercyclical adjustment arrangement, moderately increasing the margin ratio back to 100% will help appropriately reduce leverage levels, effectively protect the legitimate rights and interests of investors, and promote the long-term stable and healthy development of the market. It is important to note that this adjustment is only applicable to new margin contracts, existing margin contracts and their extensions before the adjustment will continue to be executed according to the previous regulations. This article is selected from the WeChat official account "Shanghai Stock Exchange Announcements"; Edited by GMTEight: Huang Xiaodong.