[China Securities Regulatory Commission: The China Securities Regulatory Commission will work with the stock exchanges to guide securities companies to conduct a coordinated study on risk control indicators such as the financing margin ratio, the conversion rate of securities that can be used as margin, and the maintenance guarantee ratio, and further optimize and maintain flexibility] On November 2, the head of the relevant department of the China Securities Regulatory Commission answered reporters’ questions on the recent work related to stabilizing the market and stabilizing expectations. In terms of giving full play to the countercyclical adjustment function of margin trading and securities lending business, what are the recent considerations of the China Securities Regulatory Commission? Answer: Margin margin trading is one of the important basic systems of the capital market. It plays a positive role in calming irrational fluctuations, promoting price discovery, attracting medium and long-term funds into the market, and meeting investors' financing needs. In January 2026, based on the market situation at the time, the Shanghai and Shenzhen North Exchanges increased the financing margin ratio from 80% to 100%, which played a positive role in slowing down the procyclical accumulation of leverage risks, promoting rational trading, and preventing and controlling risks in advance. Recently, financing balances and trading activity have declined significantly, and the overall leverage level has become stable. In order to stabilize the capital market, boost investor confidence, and promote the functions of margin trading and securities lending business, the China Securities Regulatory Commission will work with the stock exchanges to guide securities companies to conduct overall research on risk control indicators such as the financing margin ratio, the conversion rate of securities that can be used as margin, and the maintenance guarantee ratio, and further optimize and maintain flexibility. On the basis of overall controllable risks, and in accordance with statutory countercyclical adjustment arrangements, financing space will be released appropriately, existing funds will be revitalized, and market liquidity will be enhanced. Investors should continue to uphold rational investment concepts and use financing tools rationally based on their own risk tolerance. The China Securities Regulatory Commission will continue to urge securities companies to effectively strengthen risk management and protect the legitimate rights and interests of investors.