Head of China Research - Forsyth Barr Asia, Forsyth Barr Asia

David Millhouse

Head of China Research - Forsyth Barr Asia

Forsyth Barr Asia

Thematic (Sector/Industry)

China markets sold off last week, post news <span style='font: small/normal Arial, "BB.Proportional"; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; float: none; display: inline !important; white-space: pre-wrap; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;'>China’s securities regulator plans to start a new round of checks on the margin-lending businesses of brokerages. <span style='font: small/normal Arial, "BB.Proportional"; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; float: none; display: inline !important; white-space: pre-wrap; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;'>Despite the crackdown on 3 brokers earlier in the year, the outstanding balance of margin debt on the Shanghai Stock Exchange has climbed to a new record. <span style='font: small/normal Arial, "BB.Proportional"; color: rgb(0, 0, 0); text-transform: none; text-indent: 0px; letter-spacing: normal; word-spacing: 0px; float: none; display: inline !important; white-space: pre-wrap; -webkit-text-size-adjust: auto; -webkit-text-stroke-width: 0px;'>We are concerned that further crackdowns on margin trading on the A-share will be required near term, in particular on umbrella trusts.

China markets sold off last week, post news China’s securities regulator plans to start a new round of checks on the margin-lending businesses of brokerages. Despite the crackdown on 3 brokers earlier in the year, the outstanding balance of margin debt on the Shanghai Stock Exchange has climbed to a new record. We are concerned that further crackdowns on margin trading on the A-share will be required near term, in particular on umbrella trusts.  

CHINA MARKET: Growing risks of regulatory intervention on leverage 

Hong Kong

Haitong International Securities Group Ltd. provides brokerage and retail margin  financing, corporate finance, investment management, fixed income, currency and  commodities as well as structured financing products and services to domestic and international institutional clients and individual investors.

Haitong International Securities Group (665 HK)

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
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Dividend (Yield)	0.00

CHINA MARKET: Growing risks of regulatory intervention on leverage

China markets sold off last week, post news China’s securities regulator plans to start a new round of checks on the margin-lending businesses of...

David Millhouse