China Brokers Face Double-Whammy as Margin Finance Curbed
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China’s biggest brokerages are getting squeezed on two fronts as regulators curb loans to equity traders.
Not only does the three-month ban on new margin-trading accounts at Citic Securities Co. and Haitong Securities Co. reduce their potential earnings from lending to clients, it also curbs one of the biggest buyers of the firms’ own shares: margin traders.