FINANCE

China Tightens Margin Trading Rules to Cool Stock Market Rally

Published: Jan. 14, 2026 7:04 p.m. GMT+8

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Stock market performance displayed on a large screen in Shanghai’s Jing’an district on Jan. 14, 2026. Photo: VCG

China’s stock exchanges tightened margin trading rules Wednesday, moving to cool a sharp rally after shares surged on heavy volumes.

The Shanghai, Shenzhen and Beijing exchanges said the minimum margin ratio for financing share purchases will be raised to 100% from 80%.

By tightening leverage rules, regulators are seeking to rein in a “fast bull” market, aiming to prevent a repeat of the highly leveraged boom and bust seen in 2015 and steer the rally toward a more fundamentals-driven path, analysts say.

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China’s stock exchanges raised the minimum margin ratio for share purchases from 80% to 100%, aiming to curb excessive leverage.
Outstanding margin financing surpassed 2.5 trillion yuan ($358 billion) by 2023, reaching levels comparable to 2015.
The move follows a 17-day market rally and is expected to pressure speculative stocks while favoring defensive firms.

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