Chart of the Day: Margin Debt Hits Four-Year Low

Daily margin debt on the Chinese mainland’s stock exchanges — the value of shares that investors bought with borrowed money — fell to its lowest point since November 2014 at the end of last year, signaling investors’ cautious attitude toward the country’s beleaguered stock markets.

The balance of margin debt on the Shanghai and Shenzhen stock exchanges fell to 749 billion yuan ($108.9 billion) on Dec. 28, down 6.2 billion yuan from the day before.

Leverage is dwindling as China’s stock market performs poorly amid the trade dispute between the world’s two largest economies and concerns over the country’s sluggish growth.

Graphic: Gao Baiyu/Caixin

Contact reporter Tang Ziyi (ziyitang@caixin.com)