China investors curtail margin trading as stock market falls

SHANGHAI: China’s month-long stock market correction has suppressed investor appetite for risk and pushed margin lending to its lowest level in three months, as players tread cautiously amid concerns about economic growth and policy tightening.

Margin lending, wherein investors can multiply their investible funds by using their securities as collateral, dropped 6% between mid-April and mid-May in line with a decline of a similar magnitude in China’s main stock indices.