Some listed Chinese companies halted trading yesterday, the Financial Times reports, allowing owners to unwind some bets made previously to offer stock as collateral for credit.
China has been facing a growing corporate debt problem in recent years. The central government has pledged to contain any associated risks to the financial system, putting pressure on companies to deleverage.
Some shareholders, however, used company shares as collateral in exchange for credit, sparking concerns that any selling-off from margin calls could have significant knock-on effects on lenders.