BEIJING, Jan. 14 (Xinhua) -- China's major stock exchanges on Wednesday raised the minimum margin requirement for leveraged stock purchases to 100 percent from 80 percent, as authorities moved to moderate leverage levels and ensure financial stability.
This step, approved by the China Securities Regulatory Commission (CSRC), was announced in notices by the Shanghai, Shenzhen and Beijing stock exchanges, which characterized the change as "counter-cyclical adjustment."
By returning the ratio to 100 percent, regulators aim to moderate leverage levels, safeguard investor interests, and promote long-term healthy development of the capital markets, according to the notices.
The move marks a reversal of the policy implemented in August 2023, when the margin ratio was lowered to 80 percent to bolster trading volumes and support the market. Since that reduction, financing scales and turnover have climbed steadily, and Wednesday's adjustment follows recent active trading and ample liquidity in the market.
The exchanges said that the new rules apply only to newly opened margin contracts. Existing contracts initiated before the adjustment, as well as their extensions, will not be affected. ■
