Sep 2, 2025
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Record Margin Debt in China’s Stock Market Reaches $320 Billion
Chinese investors have borrowed a record 2.28 trillion yuan ($320 billion) for margin trading in the onshore equity market, exceeding the previous peak from 2015. This indicates increased risk appetite as the Shanghai Composite Index has risen 15% this year, outperforming the S&P 500's 10% increase.
- The surge in margin trading occurs amid slowing economic growth.
- MacroMicro highlights that corporate pricing power is under threat, with forward earnings down 2.5%.
- The unwinding of high margin debt could lead to significant market volatility globally.
Crypto Market Sentiment
In the cryptocurrency sector, funding rates for the top 25 cryptocurrencies are between 5% and 10%, reflecting moderate bullish leverage. While there is demand for leveraged long positions, traders remain cautious, balancing optimism with risk management.
