China launching new probe into margin trading, bank lending: sources

Beijing

CHINESE regulators will launch a fresh investigation into stock margin trading, and banks have been told to tighten supervision of their lending practices to ensure loans aren't funnelled into stock markets, three sources with direct knowledge of the matter told Reuters.

The China Securities Regulatory Commission and the China Banking Regulatory Commission did not respond to a request seeking comment. The news comes as Beijing moves cautiously to suppress the excessive use of debt to make aggressive bets on Chinese stock markets, which have gained around 40 per cent since November.