Margin financing balance at Shanghai and Shenzhen exchanges rises CNY26.364 bln

On January 14, 2026, the Shanghai, Shenzhen, and Beijing Stock Exchanges announced increase in minimum margin ratio for leveraged securities purchases from 80% to 100%, following approval from the China Securities Regulatory Commission (CSRC). This adjustment, part of statutory counter-cyclical measures, aims to moderate leverage levels and support long-term market stability. The change applies only to newly opened margin trading contracts, with existing contracts remaining subject to the previous rules.

The move follows a period of robust growth in margin trading activity. As of August 12, 2025, the combined margin financing balance on the Shanghai and Shenzhen exchanges reached CNY2.0057 trillion (USD275 billion), a 10-year high. This marked an increase of CNY16.7 billion from the previous day and reflects heightened investor confidence and market liquidity. The balance has risen steadily since early June, gaining CNY219.5 billion since June 3.

The current margin debt level accounts for 2.29% of the free-float market capitalization of mainland shares, significantly lower than the 2015 peak. This suggests that while leverage is active, it remains within more moderate levels compared to previous cycles. Analysts note that supportive macroeconomic conditions, including 5.3% GDP growth in 2025, and policy measures to reduce excessive competition, are likely to sustain investor optimism.