Regulators’ suspension of new margin accounts at China’s three biggest brokerages and other measures seem to be no match for the draw of Shanghai shares bought with borrowed cash, as the outstanding balance of margin debt rose to a record RMB771.4 billion on Monday, Bloomberg reported. “Margin debt is still growing rapidly and is probably against the will of the regulators,” said Hao Hong, a strategist at Bocom International. “The regulator wants market stability but is also trying to find a way to rein in speculation. It is between a rock and a hard place.
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