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On July 10, 2024, the China Securities Regulatory Commission (CSRC) announced the suspension of all A-share securities refinancing. In the press release, the CSRC said that the decision was made after assessing the current market conditions and after an application by the China Securities Financing Corporation Limited, who is authorized to provide securities refinancing services to securities firms, responding to investors’ concerns and aiming to maintain market stability. We believe the measure is an interim measure aiming to further stabilize the market. The CSRC announced that (i) existing securities refinancing contracts can be extended but must be settled no later than September 30, 2024; (ii) the lowest margin ratio for securities borrowing and lending (SBL) should be adjusted from 80% to 100%; and (iii) the lowest margin ratio for SBL applicable to private securities investment funds will be adjusted from 100% to 120%. These increased ratios will be implemented from July 22, 2
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