Leverage ratio for financing decreased from 1.25 times to 1 time, the margin trading market of 2.68 trillion yuan welcomes a cooling down.

After 10 years, the exchanges have once again unified to raise the financing margin ratio. With the Shanghai Composite Index approaching 4200 points and the financing balance reaching a historic high again, the leverage level is being reduced. On January 14th, the Shanghai and Shenzhen Stock Exchanges jointly announced that the minimum margin ratio for investors when buying securities on margin has been increased from 80% to 100%. This adjustment only applies to new margin contracts, while existing margin contracts and their extensions will continue to be executed according to the previous rules. Some brokerage analysts told the First Financial that as the A-share market has been fluctuating recently and the Shanghai Composite Index is approaching 4200 points, it is necessary to cool down by reducing the leverage level, so the market can have a longer-term perspective. Since last year, the total margin balance has continuously reached historic highs as the A-share market has been rising. As of January 13th, the total margin balance hit another record high of 2.683 trillion yuan, while the financing balance also reached a record high of 2.6654 trillion yuan, accounting for 2.58% of the total market capitalization.