China's Margin Finance Gains Most Since November as Curbs Eased
- Gain came after agency resumed short-dated loans, cut rates
- State newspaper says cuts not aimed at encouraging leverage
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The margin financing that helped fuel last year’s stock-market boom in China -- and exacerbated its subsequent tumble -- climbed the most since November after policy makers loosened controls on the lending.
Outstanding margin trading rose 2.2 percent, the most since Nov. 9, to 863.3 billion yuan ($133 billion) on Monday, data compiled by Bloomberg show. The jump, on a day when the Shanghai Composite Index rose above 3,000 for the first time in two months, came after a government agency said it will resume short-dated margin loans to brokerages at lower interest rates.