A rule aimed at curbing exposure to overvalued stocks is posing another challenge to China\u2019s market, just as renewed Sino-American trade tensions have abruptly stalled the rally this month.<\/p>\n
The rule<\/a>, in place since 2016<\/a>, bars investors from using stocks with a price-to-earnings ratio above 300 as collateral to borrow funds for buying shares \u2014 either of the same company or others. Thanks to a rally fueled by enthusiasm for AI, the number of mainland-listed firms that now exceed this PE threshold has surged about 30% on-year to 236, Bloomberg-compiled data show. Roughly a quarter of them, including chip designer Cambricon Technologies Corp.<\/a> and Hua Hong Semiconductor<\/a>, are in the tech sector. <\/p>\n","protected":false},"excerpt":{"rendered":"A rule aimed at curbing exposure to overvalued stocks is posing another challenge to China\u2019s market, just as…\n","protected":false},"author":2,"featured_media":218958,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[733,84,93618,891,93620,93619,93621,93622,467,305,76455,3356,86,56,54,55],"class_list":["post-218957","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-artificial-intelligence","tag-business","tag-cambricon-technologies-a","tag-china","tag-china-everbright-environment","tag-hong-hua","tag-inner-mongolia-baotou-ste-a","tag-kenny-ng","tag-markets","tag-policy","tag-semiconductor-manufacturi-h","tag-stocks","tag-technology","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218957","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=218957"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/218957\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/218958"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=218957"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=218957"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=218957"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}