Business · Markets · 13 hrs ago

China to ease some stock-financing limits as market risks remain controlled

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.

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Relevant department official at China Securities Regulatory Commissionregulator official
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.
via China News Service