China raises margin requirements for stock financing trades

China’s major stock exchanges said on Wednesday they will raise the minimum margin requirement for margin financing trades, in a move aimed at cooling leverage as trading activity picks up.

The Shanghai Stock Exchange, Shenzhen Stock Exchange and Beijing Stock Exchange said, with approval from the China Securities Regulatory Commission, that the minimum margin ratio for investors buying shares through margin financing will be increased to 100 percent from 80 percent.

The change will take effect on January 19, 2026, and will apply only to newly opened margin financing contracts. Existing contracts and any extensions will continue to follow the previous rules, the exchanges said.

China cut the margin requirement from 100 percent to 80 percent in August 2023 to support market activity.