As the margin financing balance hits a new high, some brokerages face a funding shortage

According to Securities Times, some large and medium-sized securities firms have exhausted their margin financing funds. Although many securities firms raised the upper limit of margin financing last year, the current market sentiment is high and the willingness to finance is unprecedented. Not only is the margin financing quota of more than one securities firm no longer sufficient, but securities firms may also intentionally slow down liquidity release for risk control considerations.

On January 14, the Shanghai and Shenzhen Stock Exchanges adjusted the margin financing ratio from 80% to 100%. A credit business leader from a listed securities firm stated that the regulators clearly hope for the market to develop into a "slow bull" rather than a "crazy bull." Currently, the balance of margin financing continues to reach new highs, but since the market trading volume is also expanding, the proportion of margin financing transactions to the total A-share trading volume has not exceeded that of 2015