China’s $1 Trillion Stock Rally Spurs Curbs From Broker, Funds

A $1 trillion stock rally in China is sparking concerns over growing risks to investors, prompting some of the nation’s brokerages and fund managers to cut back on financing and limit purchases.

In the first such public move, Shanghai-based Sinolink Securities Co. raised its margin deposit ratio on new client financing contracts for some securities to 100%, according to a posted notice. China last approved a cut in the ratio to 80% from 100% in September 2023.