Mainland China share market closed down for third consecutive session on Thursday, 29 January 2015, extending losses into a second session, in response to fresh worries over Beijing's restrictions on lending by local brokerages. The Shanghai Composite Index dropped 1.3% to 3262.31 at the close, paring January's gain to 0.9%.
The news reported on Wednesday that securities regulator plans a new round of checks into the margin-lending businesses of brokerages. Regulators are increasing scrutiny on margin financing and umbrella trusts after investors ramped up bets on rallying shares through the use of leverage. Higher leverage exposes individuals to larger losses in the event of stock-market drops, which can be exaggerated as investors scramble to repay debt during a selloff.
Powered by Capital Market - Live News
