Margin trading

China’s stock market experienced a 7% decline in new A-share account openings in July, totaling 2.66 million, amid a global tech sell-off linked to artificial intelligence. Margin trading activity also slowed during the same period as investor appetite weakened following a strong first-half performance in technology shares.

China's stock traders reduced leveraged positions by 14% in July, contributing to a record sell-off in a major technology index and weakening Beijing's attempts to stabilize the equity market. Margin trading for stock purchases fell to 2.59 trillion yuan, down from 3.01 trillion yuan on June 25.

Polymarket is seeking regulatory approval to offer margin trading to its U.S. customers. The company aims to expand its trading options in the United States.

Kraken allows eligible users to use select tokenized stocks and ETFs as collateral for futures and margin trading without selling their holdings. The feature expands options for leveraged trading using digital assets.

JPMorgan Chase believes Chinese stocks have upside potential in 2024 as liquidity remains supportive and earnings growth expectations improve. Overseas investors have reduced underweight positions on Chinese yuan-denominated shares, and margin trading levels are reasonable, according to equity strategist Erin Zhang.

Chinese margin traders have pushed leveraged betting to an all-time high of 2.86 trillion yuan, setting records for seven consecutive days. This surge is driven by a tech stock rally fueled by easing geopolitical tensions and solid earnings, with borrowed funds flowing primarily into electronics and semiconductor sectors.