Brokerage margin positions in China managed a comeback in October, rising by Rmb124bn, or 14% MoM. The increase pales in comparison to the huge sequential increases of March-June, but they are nonetheless remarkable considering they come on the heels of the 3Q15crash, when margin positions fell 60% from a Rmb2.3 trillion mid-June peak to just Rmb900 billion at end September…
We are tempted to explain the rebound in sentiment to the end-Oct Plenum, but markets have continued higher since then. Punter interest has been broadbased, with 81% of marginable stocks seeing net margin buying in October.
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David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Brokerage margin positions in China managed a comeback in October, rising by Rmb124bn, or 14% MoM. The increase pales in comparison to the huge sequential increases of March-June, but they are nonetheless remarkable considering they come on the heels of the 3Q15crash, when margin positions fell 60% from a Rmb2.3 trillion mid-June peak to just Rmb900 billion at end September…
