Amid market volatility, margin trading collateral ratios for high-valuation technology stocks are experiencing a "roller coaster" ride.

According to an announcement from Shenwan Hongyuan Securities, adjustments to securities eligible as margin collateral and their collateral ratios were made after market close on October 10, taking effect from October 13. Among these, the collateral ratios for stocks including Advanced Micro-Fabrication Equipment Inc China, Antarctic Photonics, Mainestream Aquaculture, Linklogis, Higon Information Technology, Changying Precision Technology, BIWIN Storage Technology, SMIC, and Sinodata were raised from 0 to between 30%-70%.

On the same day, Guorong Securities and other brokerages also announced increases to the margin collateral ratios for individual stocks including SMIC and Higon Information Technology.

Notably, on October 9, multiple brokerages including East Money Securities, Guorong Securities, and Orient Securities confirmed adjustments of margin trading ratios for 9 A-share stocks including SMIC, BIWIN Storage Technology, and Luqiao Information Technology to 0.

**SMIC and Others See Ratios Return to 70%**

On October 10, Shenwan Hongyuan Securities issued an announcement regarding adjustments to securities eligible as margin collateral and underlying securities. The announcement stated that after market close on October 10, Shenwan Hongyuan Securities made the following adjustments to securities eligible as margin collateral and their ratios, effective from October 13, 2025.

The margin collateral ratios for Advanced Micro-Fabrication Equipment Inc China, Antarctic Photonics, Mainestream Aquaculture, Linklogis, and Changying Precision Technology were adjusted to 65%, BIWIN Storage Technology to 50%, while Higon Information Technology and SMIC were raised from 0 to 70%, and Sinodata was increased from 0 to 30%. Meanwhile, the margin collateral ratios for Tongyu Heavy Industry and Chuangyi Tong were reduced from 65% to 0.

On the same day, Guorong Securities and others also issued announcements raising the margin collateral ratios for individual stocks including SMIC and Higon Information Technology. Both SMIC and Higon Information Technology were adjusted to 65%. Simultaneously, the margin collateral ratios for Tongyu Heavy Industry and Chuangyi Tong were reduced from 65% to 0.

**Meeting Compliance Requirements**

Margin trading collateral ratios, simply put, represent the "discount" applied to stock market value when investors use stocks as collateral for financing in margin calculations. The higher the ratio, the more funds can be borrowed; an adjustment to 0 means the stock temporarily loses its function as collateral for financing.

According to the Shanghai Stock Exchange Margin Trading Implementation Rules, Shenzhen Stock Exchange Margin Trading Implementation Rules, and Beijing Stock Exchange Margin Trading Implementation Rules, A-share stocks with static P/E ratios above 300 times or negative ratios, as well as warrants, have collateral ratios of 0%.

On September 30, Guorong Securities disclosed detailed information about 9 stocks hitting the P/E ratio "red line." The static P/E ratios for SMIC, BIWIN Storage Technology, Tianma Technology, Ruisheng Intelligent Technology, Mainestream Aquaculture, Honghui Fruit and Vegetable, Yongding Co., Luqiao Information Technology, and Harbin Air Conditioning were all above 300 times, with Luqiao Information Technology having the highest at 947 times.

Therefore, on October 9, multiple brokerages including East Money Securities, Guorong Securities, and Orient Securities confirmed uniform adjustments of margin trading ratios for 9 A-share stocks including SMIC, BIWIN Storage Technology, and Luqiao Information Technology to 0.

This adjustment directly compressed investors' room for leveraged operations using these stocks. Orient Securities specifically cautioned in yesterday's announcement: "Adjustments to margin collateral ratios will cause changes in available margin balances, and investors are advised to pay attention to related risks." If investors hold large quantities of these stocks in their credit accounts, their total margin amounts will decrease, potentially facing pressure to add additional margin or reduce liabilities.

However, these adjustments are always dynamic. When a stock's static P/E ratio falls below 300 times, its collateral ratio can be restored.

Due to widespread market adjustments on October 10 and large-scale declines in technology stock prices, some individual stocks have already fallen below the 300-times P/E threshold. According to data published by Guorong Securities on October 10, Higon Information Technology's weekly static P/E ratio was 290.68 times after the close on the 10th, while SMIC's was 246.747 times.