Stock Investors Have a Harder Time Getting Money for Leveraged Buys

(Beijing) – Financial institutions have become more cautious about lending money to investors playing the A-share market, which is seeing its strongest rally in nearly eight years even as analysts issue warnings of a collapse.

Several sources at securities firms, trust companies and asset management firms – the primary sources of capital for leveraged trading – say they have tightened their requirements for borrowing and lowered the amounts investors can get, even though demand is still strong.