HSBC: The worst is over for China’s stockmarket as margin loans unwind

According to Bloomberg “The outstanding balance of margin loans on the Shanghai and Shenzhen bourses has tumbled by 60 percent to $147 billion since the June peak. Borrowed funds now account for 2.8 percent of overall market capitalization, a 10-month low and down from a record 4.5 percent earlier this year.” HSBC’s Equity Strategist Steven Sun says “We’ve seen the worst for mainland stocks, the whole deleveraging process is largely over.” (VIEW LINK)