On October 14th, the China Securities Regulatory Commission announced a phased tightening of securities lending and strategic investor placement of shares. Among them, the margin ratio for securities lending will be increased from no less than 50% to 80%, and the margin ratio for private securities investment funds participating in securities lending will be increased to 100%; Urge securities companies to establish and improve the allocation mechanism, penetration verification mechanism, and access mechanism for securities lending sources, and strengthen the management of securities lending transactions; Cancel the lending of special asset management plans established by executives and core employees of listed companies through participation in strategic placements, and moderately limit the lending methods and proportions of other strategic investors in the early stages of listing. The increase in the margin ratio for securities lending shall come into effect from October 30th, and other provisions shall come into effect from October 16th. The China Securities Regulatory Commission stated that it will continue to strengthen the supervision of securities lending business, timely summarize and evaluate the operational effectiveness of securities lending mechanisms, and adjust them in a timely manner based on market conditions to better play the positive role of securities lending mechanisms. The China Securities Regulatory Commission stated that in order to further strengthen the countercyclical regulation of securities lending business, after thorough argumentation and evaluation, based on the current market situation, targeted adjustments and optimizations will be made to the system of securities lending and strategic investor lending of allocated shares. On the premise of maintaining relative stability of the system, phased tightening of securities lending and strategic investor lending of allocated shares will be carried out. On the same day, the Shanghai Shenzhen North Exchange issued a relevant business notice stating that, while maintaining relative stability of the securities lending system, it is planned to further optimize the securities lending trading and other related arrangements by leveraging its countercyclical adjustment function. Specifically, at the margin lending end, the margin ratio for margin lending will be increased from no less than 50% to 80%, and the margin ratio for private equity investment funds participating in margin lending will be increased to 100%, exerting the countercyclical regulatory effect of the system. To avoid any impact on existing contracts, existing contracts will still be executed according to the original regulations. At the same time, we will urge securities companies to establish and improve the allocation mechanism, penetration verification mechanism, and access mechanism for securities lending sources, and strengthen the management of securities lending transactions. At the lending end, in accordance with relevant regulations, adjustments can be made to the lending of shares allocated by strategic investors. In order to promote the focus of listed company executives on their main business, the special asset management plan established by participating in strategic placements for listed company executives and core employees can be cancelled. Moderately limit the lending methods and proportions of other strategic investors in the early stages of listing, requiring them to only lend through non agreed declaration methods within the first 5 trading days of listing. Daily lending cannot exceed 20% of the allotted shares, and the total amount cannot exceed 50%. Market insiders have analyzed that the securities lending system itself has a countercyclical adjustment function. Based on market conditions and following the decrease in the proportion of financing margin in the early stage, this stage of adjustment and optimization of securities lending and other systems is being carried out, with a moderate increase in the proportion of securities lending margin and a moderate restriction on stock lending and investment, which is expected to achieve the optimal policy effect. In addition, setting differentiated margin ratio requirements for private equity funds and tightening the control responsibilities of securities companies over securities lending clients and trading behaviors will further guide the rational allocation of securities sources and improve the structure of securities lending investors. China Securities News reporter learned that the China Securities Regulatory Commission will strengthen the supervision of illegal and irregular behaviors, tighten the institutional fence, and further strengthen supervision and law enforcement. For illegal behaviors, it is necessary to