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Re: DewDiligence post# 10214

Friday, 11/13/2015 10:21:45 AM

Friday, November 13, 2015 10:21:45 AM

Post# of 29435
China doubles margin requirements on stocks to curb leverage:

http://www.bloomberg.com/news/articles/2015-11-13/china-doubles-margin-requirement-for-stock-trading-amid-rebound

Margin requirements will be raised to 100 percent from 50 percent starting on Nov. 23, the Shanghai and Shenzhen bourses said in separate statements after local exchanges closed on Friday. The rule change means that an investor with 1 million yuan ($156,895) in their account is limited to borrowing another 1 million yuan from a broker to buy more shares. Previously, they could borrow as much as 2 million yuan.

A crude—but likely effective—attempt to avert a new speculative bubble in China’s stock market similar to the one that popped earlier this year.

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