China Finance: After 10 Years! Mainland A-Share Margin Trading Balance Breaks Through 2 Trillion Yuan Mark Again
Recently, mainland A-shares have been steadily rising, and as leveraged funds in the market, the margin trading balance has correspondingly increased. As of the 11th, the combined margin trading balance of Shanghai and Shenzhen A-shares reached approximately 2.0122 trillion yuan (RMB), with a single-day increase of 16.841 billion yuan. Notably, this marks the first time in 10 years that the A-share margin trading balance has exceeded the 2 trillion yuan threshold, with the last occurrence dating back to July 1, 2015. Market analysis suggests that the continuous expansion of margin trading reflects an improvement in market risk appetite, with overall liquidity conditions in the A-share market remaining relatively loose.
Observing recent trends, the margin trading balance of mainland A-shares has shown sustained growth since June. Compared to the first trading day of June this year, the cumulative increase in the margin trading balance has reached 219.51 billion yuan, while the margin trading balance now accounts for 2.29% of the A-share market's circulating市值.
By market segment, the Shanghai Stock Exchange's margin trading balance is about 1.02179 trillion yuan, the Shenzhen Stock Exchange's is approximately 983.89 billion yuan, and the Beijing Stock Exchange's is around 6.51 billion yuan.
The margin trading balance is an important indicator of market sentiment and leverage levels. Looking back to 2015, when mainland A-shares were in a bull market, the margin trading balance also hit a record high. However, the market subsequently overheated and experienced a sharp correction. Nevertheless, Securities Times analysis indicates that the current margin trading balance ratio is far below the 2015 peak. The current margin trading balance is only slightly above 2%, compared to over 4% during the 2015 peak. This suggests that while leveraged trading is active, it has not yet reached excessive speculation levels.
