Chinese Stocks See Risk Appetite Revival as Margin Loans Jump

Risk appetite is returning to China’s tech sector, with margin lending, trading volumes and benchmarks all climbing back to highs thanks to growing bets that a recent rally will continue.

The outstanding balance of debt taken out for stock purchases in Shanghai and Shenzhen — a barometer of risk tolerance — jumped to a record 2.8 trillion yuan ($412 billion) on Monday, extending gains into a fourth session. The move suggests a renewed embrace of risk just as the Shanghai Composite Index pushes past 4,200 to close at its highest level in more than a decade.