Quality Firms Can Add Leverage

This article is notable because it was at the top of the finance section. It says excellent securities companies have room to increase their leverage. Perhaps a shift in regulatory tone will follow or at least as related to the A-share market...

iFeng: 证监会刘青松:金融去杠杆可以考虑优秀券商适度加杠杆
The Financial Association reported on July 15 that Liu Qingsong, a researcher at the Research Center of the China Securities Regulatory Commission, said at the 2018 International Monetary Forum that financial de-leverage should serve the needs of the healthy development of the real economy; vigorously develop equity financing; financial de-leverage can be considered Excellent securities companies moderately leverage; thoroughly implement new regulations for asset management, remove multiple layers of nesting, eliminate regulatory arbitrage; strengthen monitoring and monitoring of financing businesses, crack down on illegal underground fund-raising activities; and prudent residents add leverage.

Liu Qingsong said that the current market guarantee ratio of margin financing and securities lending business is about 250%, the maximum leverage ratio of investors is 1 time, and the level of physical leverage is 0.67 times. The stock pledged repo business scale is 1.5 trillion yuan, the securities company's self-operated investment is 820 billion yuan, and the asset management plan is 680 billion yuan, accounting for about 2.7% of the A-share market capitalization.

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