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Beijing quietly encourages return to margin trading for mainland markets

State lender China Securities Finance Corp., which provides brokerages with loans for stock purchases, has resumed offering several short-term loans and cut the interest date for a longer-term one in a sign that regulators are moving to quietly encourage purchasing stocks on margin, The Wall Street Journal reported, citing the figures from the company’s website. The low-key relaunch suggests that Beijing remains reticent to encourage widespread margin lending again after such investments dramatically compounded the summer mainland equities rout. “I don’t think it will lead to another so-called ‘leveraged bull’ market as we saw last year for now,” said Zhou Xu, an analyst at Nanjing Securities.

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