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Margin Usage Hits Multi-Year Low

CHINA STOCKS

MNI (London) - Margin deployment in Chinese equity markets pulled back further on Tuesday (per China Securities Finance Corporation data), suggesting that some levered longs used the bounce in benchmark indices (derived from delivered and expected policymaker support) to exit positions, despite the CSRC’s well-documented guidance to brokerages surrounding margin matters. That leaves Chinese margin utilisation at the lowest level seen since Sep '20.


Fig. 1: China Outstanding Margin Balance (CNY 000 Mn)

Source: MNI - Market News/Bloomberg

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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