You are here

China's next bear market seen in US$358b of margin loans

Leveraged investors have made so much money from rising stock prices that it would take a big market slump for them to start unwinding positions, say analysts.


STOCK forecasters in search of an early warning system for the next Chinese bear market are zeroing in on the country's record US$358 billion pile of margin debt.

When that three-year build-up of leveraged positions starts to unwind, regulators will struggle to limit the