Market falls threaten to expose cracks in corporate China
Rapid increase in leveraged trading raises fears of forced selling that could trigger broader financial instability
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Shanghai
DESPITE reassurances by regulators that margin debt in China's stock markets remains manageable, total leverage could be as much as US$645 billion - magnifying risks not just for retail investors, but also the thinly stretched corporate sector.
The scale of lending in China's stock markets has become a major concern for global investors. For many, it is a greater worry than even the Greek crisis because a Chinese market crash could destabilise the world's second largest economy.
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