Business · Markets · 13 hrs ago
China to ease some stock-financing limits as market risks remain controlled
China’s securities regulator said it will review rules for borrowing to buy stocks as it seeks to support the market.
The plan involves the China Securities Regulatory Commission and the Shanghai, Shenzhen and Beijing stock exchanges.
In January 2026, the exchanges raised the minimum margin requirement for stock financing from 80% to 100% to curb rising leverage and encourage more cautious trading.
Recently, financing balances and trading activity have fallen, while overall leverage has become more stable.
The regulator says it will consider changes to margin requirements and other risk controls, making limited financing room available while risks remain manageable.
The aim is to improve market liquidity and investor confidence.
Investors are urged to use borrowing according to their ability to bear risk, and securities firms will remain responsible for managing risks and protecting clients.
China’s securities regulator said it would moderately ease some stock-financing limits while overall risks remain controllable.
The regulator will work with stock exchanges to review financing margin requirements and other risk-control measures.
It said financing balances and trading activity had recently fallen, while overall leverage had become more stable.
In January 2026, the Shanghai, Shenzhen and Beijing stock exchanges raised the financing margin ratio from 80% to 100%.
The regulator urged investors to use financing tools according to their risk tolerance and said it would press securities firms to strengthen risk management.
- Who
- China’s securities regulator, working with stock exchanges and securities firms.
- What
- It plans to moderately release some financing capacity and review related risk-control measures.
- When
- The announcement was made on the evening of November 2, 2026.
- Where
- China.
- Why
- Financing balances and trading activity had fallen, and the regulator aims to support market stability, investor confidence and liquidity while keeping risks controlled.
This story does not have two clearly opposing sides.
The Shanghai, Shenzhen and Beijing stock exchanges raised the financing margin ratio from 80% to 100%.
The securities regulator said it would review risk-control measures and moderately release financing capacity while risks remained controllable.
- Financing margin ratio
- Raised from 80% to 100% in January 2026
- Announcement date
- November 2, 2026
- Measures under review
- Financing margin ratio, eligible collateral conversion rates and maintenance margin ratio
- Recent market conditions
- Financing balances and trading activity had fallen
- Policy aim
- Support liquidity while keeping risks controllable
1 source
What people are saying
On the basis that risks are generally controllable, we will moderately release financing capacity in accordance with the statutory countercyclical adjustment arrangements, activate existing funds and improve market liquidity.