China firms face margin call sell-off
They may be forced to sell US$12 billion in shares, dealing a further blow to battered stock markets
Shanghai
CHINESE companies may be forced to sell at least US$12 billion in shares in coming weeks to meet margin calls, dealing a further blow to stock markets which have already seen some US$2 trillion in value wiped out so far this year.
Some companies that had pledged shares as collateral for loans are now faced with a stark choice - dump them under pressure from impatient brokers and banks and book a loss, or stump up fresh cash or other assets to make up for the difference in value.
If that was not enough to dash hopes that China's market…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Philippines’ Recto sees rate-cut delay risk if peso sinks to 59
Ecuador president declares state of emergency over energy crisis
US Senate has agreement on Fisa reauthorisation, will vote on Friday night, Schumer says
US expects to finalise new Aukus trade exemptions in next 120 days
IMF concerned about debt, fiscal challenges facing low-income countries
Bank of Japan’s Ueda says ‘very likely’ to hike rates if inflation keeps rising