GUOTAI JUNAN I (01788) rose more than 4% before the midday break. As of the time of writing, the stock was up 4.17%, trading at HK$2.75 with a turnover of HK$400 million. The catalyst for the move is news that the company recently received formal approval from the Hong Kong Securities and Futures Commission (SFC). This approval grants GUOTAI JUNAN I permission to adopt the International Swaps and Derivatives Association (ISDA) Standard Initial Margin Model (SIMM) for calculating initial margins on over-the-counter (OTC) derivative transactions. The authorization is effective from February 12, 2026, and applies to two of its licensed entities: Guotai Junan Securities (Hong Kong) Limited and Guotai Junan Forex Limited. This milestone signifies a major advancement in the risk management capabilities of GUOTAI JUNAN I's OTC derivatives business. It not only consolidates the firm's position as a benchmark for compliance and risk control but also significantly enhances the international competitiveness of Chinese securities firms. By implementing the globally recognized SIMM model, the company aligns its practices with major international financial institutions. This enables more precise and efficient management of initial margins, effectively controlling counterparty risk while substantially reducing transaction costs. The move leads to higher capital efficiency, strengthens trust in collaborations with global institutional counterparties, and thereby boosts the long-term competitiveness of its operations.