China Margin Debt Bounces in Sign Animal Spirits Stirring
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China stock traders boosted margin loans as they returned from the Lunar New Year holiday, ending weeks of deleveraging in a potential sign that sentiment is on the mend.
The outstanding amount of margin debt balance in mainland bourses rose by 1.1% on Monday to mark the biggest uptick since September. The balance, a key measure of leverage in the stock market, had fallen for weeks prior to the holiday amid concerns that a downward equity spiral will trigger margin calls and a deeper selloff.