China's Margin Debt Hits Record $431 Billion, Surpassing 2015 Bubble Peak
China's stock market margin debt has reached a record ~$431 billion, more than doubling over two years and exceeding the 2015 bubble peak by 22%.
Margin debt in China has surged to an all-time high of approximately $431 billion, according to The Kobeissi Letter. The figure has doubled over the past two years and now stands 22% above the peak reached during the 2015 Chinese stock market bubble, which topped out at around $354 billion.
Daily margin trading volume on the Shanghai Stock Exchange has averaged $22 billion over the last two weeks, near the highest levels on record. Over the last 12 months, this volume has tripled, matching the intensity seen during the 2015 peak.
The data signals exceptionally strong risk appetite among Chinese investors, reminiscent of the speculative frenzy that preceded the 2015 crash. While not an immediate trigger, such leverage build-up often raises concerns about sustainability and potential volatility.
Source: The Kobeissi Letter