Market Sentiment Continues to Improve: A-Share Margin Balance Exceeds 2 Trillion Yuan, Hitting a Decade High

　　Recently, the A-share market has exhibited an overall active trend. Among various indicators measuring market activity, the continuous growth in margin balance has become a prominent highlight. As of now, the margin balance in the A-share market has surpassed the 2 trillion yuan mark, reaching a new high in nearly a decade.

　　The margin trading model in the A-share market refers to investors using cash or stocks as collateral to borrow money from brokers to purchase stocks. For example, if an investor is bullish on a particular stock, they may first buy some shares and then use margin financing to buy more. If the stock price rises, the investor can sell the shares, repay the borrowed funds and interest, and keep the additional profits generated by leverage—this is the leveraging effect of margin trading. The "margin balance" refers to the total amount of borrowed funds that have not yet been repaid in the market. Therefore, a higher balance indicates more funds being borrowed.

　　Exchange data shows that as of August 15, the margin balance on the Shanghai Stock Exchange reached 1,033.903 billion yuan, while the Shenzhen Stock Exchange reported 1,000.404 billion yuan. The total margin balance exceeded 2 trillion yuan, setting a new high in nearly ten years.

　　Li Qiusuo, Chief Domestic Strategist at CICC Research: Since September 24 last year, the continuous implementation of pro-growth policies has led to a sustained improvement in market risk appetite, including investor sentiment, and the relative attractiveness of the stock market has increased to some extent.

　　Li Qiusuo, Chief Domestic Strategist at CICC Research: In 2014, incremental margin financing funds were heavily allocated to traditional sectors such as finance and real estate, with relatively concentrated proportions. This time, however, we see a more diversified allocation.

　　At the same time, the margin balances for the STAR Market, ChiNext, and the Beijing Stock Exchange have all hit record highs. "Fresh capital" is accelerating its inflow into these sectors, showing a trend of targeted increases in positions aligned with core directions such as new productive forces, technological innovation, and high-end manufacturing.

　　Tian Lihui, Dean of the Institute of Financial Development at Nankai University: Another notable feature of this round of margin financing allocation is that sector selection closely aligns with the national policy direction of promoting industrial upgrading, indicating that the capital flows are supported by solid fundamental logic.