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.
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