China nips growing bubble in the bud as margin loans are targeted

New York

NO more bubbles. That's the takeaway from China's move to limit leveraged bets in its equity market.

The country's two mainland stock exchanges said last week margin requirements will be raised to 100 per cent from 50 per cent starting on Nov 23. The rule change means that investors with one million yuan (S$223,166) in their account are limited to borrowing another one million yuan from a broker to buy more shares. Previously, they could borrow as much as two million yuan.