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Home » Concerns grow over mounting margin calls as China’s stock market slides

Concerns grow over mounting margin calls as China’s stock market slides

    China's stock market slump in January led to a wave of calls for investors to top up cash in their margin trading accounts, triggering fears that a further slide in share prices could spur forced selling of tens of billions of dollars worth of stocks. With stock prices falling, major shareholders in China-listed companies who had borrowed against their holdings now face margin calls, that is calls to top up the collateral they placed with lenders. The value of shares that face the risk of forced liquidation as a result totals 183.6 billion yuan ($26 billion), up 26% from end-November, Zheshang Securities estimates.

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