China’s margin loans hit four-year high in stock market rally on stimulus expectations
China’s margin loans hit four-year high in stock market rally on stimulus expectations

China’s margin loans hit four-year high in stock market rally on stimulus expectations

 

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China's margin trading is picking up as investors rush into the stock market on expectation that Chinese government will step up stimulus measures to support the economy hit by the coronavirus outbreak.

Securities brokerages are flocking to issue short-term bills and corporate bonds to raising funding to support corporate operation, including help their margin loan customers.

In China’s official margin financing market, in which stock investors borrow from securities brokerages, outstanding loans had amounted to 1.09 trillion yuan as of February 21, the highest level since January 8, 2016, according to . . .

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