HK Stock Market Move | Guotai Junan I (01788) rose more than 4% in the morning recently, approved to use ISDA SIMM, and the company's risk management capabilities have reached a new level.

GUOTAI JUNAN I (01788) rose over 4% in the morning, up 4.17% to 2.75 Hong Kong dollars as of the time of writing, with a trading volume of 400 million Hong Kong dollars. On the news front, according to the official WeChat account of GUOTAI JUNAN I, the company has formally obtained approval from the Securities and Futures Commission (SFC) of Hong Kong. Starting from February 12, 2026, the company can use the International Swaps and Derivatives Association (ISDA) Standard Initial Margin Model (SIMM) to calculate initial margin for over-the-counter derivative transactions in its two licensed entities (Guotai Junan Securities (Hong Kong) Limited and Guotai Junan FX Limited). This approval marks a new milestone in the risk management capability of GUOTAI JUNAN I's over-the-counter derivatives business, enhancing compliance and risk control standards and significantly improving the international competitiveness of Chinese securities firms. By adopting the widely-used SIMM model in the international market, the company can align with the standards of major international banks, manage initial margin more accurately and efficiently, control counterparty risks effectively, save trading costs significantly, achieve higher capital efficiency, enhance trust with global institutional counterparties, and ultimately enhance the long-term competitiveness of the business.