Nov
15
China Wants to End Bubbles and Busts by Targeting Margin Loans
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Drop by U.S.-traded Chinese shares shows move was unexpected
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Officials seen learning from mistakes of boom-bust this year
No more bubbles. That’s the takeaway from China’s move to limit leveraged bets in its equity market.
The country’s two mainland stock exchanges said late Friday margin requirements will be raised to 100 percent from 50 percent starting on Nov. 23. The rule change means that investors with 1 million yuan ($156,895) in their accounts are limited to borrowing another 1 million yuan from a broker to buy more shares. Previously, they could borrow as much as 2 million yuan…
China Wants to End Bubbles and Busts by Targeting Margin Loans
