Margin trading loses spark for investors
Print Edition
THE margin trading balance outstanding in China’s A-share market breached a nearly 14-month-low record on Monday after falling for 22 consecutive trading days, signaling a loss of steam in the market.
The total margin trading balance on the Shanghai and Shenzhen bourses stood at 899.6 billion yuan (US$136.7 billion) on Monday, with the margin lending balance at 897.6 billion yuan and securities lending at 2 billion yuan.
Margin trading, where investors borrow money from a broker to buy stocks, fueled growth in China’s stock market and raised concerns that margin debt has created a bubble.
Traders have been tapping lower borrowing costs after the central bank cut interest rates.
This high-risk but lucrative investment practice was favored by Chinese investors during the stock market frenzy last summer, with the balance peaking at over 2 trillion yuan in mid-June 2015. To curb the risk, the securities regulator capped the margin trading size and short selling for the first time, at four times a brokerage’s net capital.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
