China Margin Debt Drops Most Since 2016 Amid Stock Rout
- Outstanding margin debt in mainland fell by 2.7% Monday
- Drop coincides with a plunge in China’s small cap shares
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China’s margin debt for stock trades fell by the most since early 2016 as a deepening slump triggered a rush to unwind leveraged positions.
The outstanding balance of margin debt fell by 2.7% on Monday, the most since January 2016, when the stock market was reeling from a historic crash from a mid-2015 peak.