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China Traders Cut Margin Debt in First Two-Day Drop Since April

Chinese traders sold shares purchased with borrowed money for a second day on Tuesday, the first back-to-back decline since April, after the benchmark stock index tumbled the most since the 2008 global financial crisis.

The outstanding balance of margin debt fell 0.7 percent on Tuesday and 0.2 percent last Friday on the Shanghai Stock Exchange, according to bourse data. Margin debt rose to a record 1.48 trillion yuan ($238.5 billion) on June 18. The Shanghai Composite Index reached a seven-year high on June 12 before slumping 13 percent last week.