Bocom Sees Chinese Stocks Rebounding After Margin Debt Shakeout

China needs another month to get rid of unregulated margin debt, leaving stocks poised to rebound from around November, according to Bocom International Holdings Co.

The nation had cleared up 69 percent of non-compliant margin lending accounts as of Sept. 23, China Securities Regulatory Commission spokesman Zhang Xiaojun said at a briefing on Friday. A rapid increase in leverage fueled the Shanghai Composite Index’s doubling from November through mid-June, and deepened the rout on the way down as traders unwound positions amid a government crackdown on shadow financing.