Crypto investors wary as Chinese margin debt hits record highs
Chinese investors are borrowing record sums to buy local equities, signaling a renewed appetite for risk across global markets. Yet, crypto traders are in a “wait-and-see” state, even as leverage in mainland China’s stock exchanges climbs to levels not seen since 2015.
According to Bloomberg, margin trades outstanding in China’s onshore equity market rose to 2.28 trillion yuan ($320 billion) on Monday. The figure surpassed the previous peak of 2.27 trillion yuan set during the equity frenzy of 2015.
Margin trading, which allows investors to borrow from brokers to buy securities, is used in stock markets as a gauge of confidence and risk appetite.
Chinese market gains buoyed by liquidity tailwinds
Per data from Trading…
