China Margin Debt Drops to 2014 Low After Shanghai Stock Rout
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Margin debt in China’s stock market shrank to the lowest level since December 2014, a sign of waning investor confidence after the Shanghai Composite Index’s biggest monthly tumble since 2008.
The outstanding balance of margin debt on the Shanghai and Shenzhen stock exchanges dropped for 22 straight days to 897.6 billion yuan ($136.4 billion) on Monday, according to data compiled by Bloomberg. It fell below the lows reached during a summer rout when the Shanghai gauge tumbled more than 40 percent from mid-June through its August low.