Shanghai Shenzhen Margin at 18 Month Low

Reuters: 沪深证交所两融余额周一增0.3亿元 脱离一年半来新低
China's stock market benchmark Shanghai Composite Index closed up 0.64%, Shanghai and Shenzhen Stock Exchange that day margin balances increased 030 million yuan; two financial balance of the two cities was 8,268.3 billion yuan, a new low in the last year and a half.

Back in March: China increases support for margin trading
China Securities Finance (CSF), a state-backed agency offering funding services to brokerages for margin trading, cut the interest rates it charges, its website showed, which will make borrowing cheaper for investors if stockbrokers pass on the savings.

CSF -- a key part of the "national team" that has bought stocks on the government's behalf -- also started offering brokerages short-term loans, on top of the six-month terms previously available.

"The loosening could reignite interest in the equity market, particularly as the regulators’ actions last year -- to rein back private sector broker leverage -- helped trigger the correction in equity prices," Koon Chow, senior macro and currency strategist at Union Bancaire Privee in London, told Bloomberg News.
Chinese stocks have been rallying on expectation A-shares will be added to MSCI indexes, and even then the markets are testing the post-peak lows.

No comments:

Post a Comment