DFZQ's introduction of an "immediate liquidation line" for its margin trading and securities lending business has drawn significant market attention.

The company recently announced that, to further enhance the risk monitoring system for its margin trading services and protect investors' rights, it will implement a new "immediate liquidation line" monitoring indicator starting May 18, 2026.

According to DFZQ's announcement, the "immediate liquidation line" refers to a specific maintenance margin ratio value used to monitor the risk status of a client's margin account. The parameter for this line is set at 115%. The company reserves the right to dynamically adjust this parameter based on market conditions, its own risk management needs, and the client's risk tolerance.

Following the news, many investors have expressed curiosity about the new 115% threshold. The term "immediate" has led some to mistakenly believe that positions would be forcibly liquidated the moment the maintenance margin ratio falls to 115%. Others have attempted to link the establishment of this line to broader market trends.

So, what is the actual situation?

Firstly, regarding the specific 115% maintenance margin ratio, a senior executive from a leading brokerage's margin trading department explained that there are several universally recognized key thresholds in the industry, such as the 300% withdrawal line and the 130% liquidation line. While brokerages may adjust the liquidation line slightly for different clients, 130% remains the mainstream standard.

The executive further clarified, "Setting an 'immediate liquidation line' at 115% is not a new industry regulation; it's simply a difference in terminology among brokerages. Furthermore, the specific maintenance ratio for this line varies between firms."

A review of major brokerages' websites reveals that below the standard 130% liquidation line, some have established similar thresholds. For instance, one brokerage has an "emergency liquidation line" at 110%, another has a "minimum line" at 115%, and a third has a "next-day liquidation line," also at 115%.

"Our company's 'immediate liquidation line' was established in response to the expanded daily price limits implemented during the registration-based IPO reform several years ago. With a 20% price fluctuation limit, sharp stock movements can more easily lead to a situation where a forced liquidation fails to cover the debt owed to the brokerage," the aforementioned margin trading executive stated.

A professional from another brokerage's margin trading department similarly noted that their firm has long had such a threshold below the standard liquidation line. "Overall, the 'immediate liquidation line' is essentially a standard clause in margin trading contracts," they added.

Secondly, regarding the timing of liquidation, the executive explained, "Despite the term 'immediate,' brokerages generally provide investors with time to raise additional funds."

An examination of multiple brokerages' margin trading contracts shows DFZQ's stipulation: If a client's maintenance margin ratio falls below the "immediate liquidation line" after the market close on day T, the client must raise the ratio to at or above the standard liquidation line before the morning market close on day T+1. Failure to do so grants the brokerage the right to execute a forced liquidation after the morning session on T+1.

Another major brokerage's contract states that for accounts with specific board trading permissions, if the end-of-day maintenance ratio falls below its "next-day liquidation line," the client must supplement collateral before 11:30 AM on the next trading day to bring the ratio back to at least 130%. If the client fails to provide sufficient collateral, the brokerage is authorized to forcibly liquidate assets in the margin account as per the contract.

In general, without an "immediate liquidation line," if the maintenance ratio falls below the standard liquidation line (or a similar threshold) on day T, the brokerage typically requires the investor to supplement collateral on day T+1. If the collateral is insufficient, forced liquidation would occur on day T+2. With the "immediate liquidation line" in place, the brokerage can potentially execute the liquidation as early as the afternoon of day T+1.

Finally, regarding attempts to correlate the establishment of this line with market conditions, multiple industry sources stated that the primary motivation for setting an "immediate liquidation line" is risk control, not a reflection of market outlook.

"Establishing an additional special threshold below the standard liquidation line serves two main purposes: first, to protect the rights of the creditor, which is the brokerage, fulfilling risk control requirements; second, to prevent investors from owing debt to the brokerage after a forced liquidation, especially under the expanded daily price limits," the margin trading department head explained.

Wind data shows that as of May 11, the financing balance within the A-share market's total margin trading and securities lending balance reached 2.813 trillion yuan, hitting a new historical high.