Overview

• Outstanding margin financing rose to about 2.28–2.29 trillion yuan on Monday, surpassing the 2015 peak, according to China Securities Finance and Bloomberg.
• The Shanghai Composite has climbed roughly 27% since April to 10-year highs, even as the broader economy struggles with weak demand and property stress.
• Leveraged quantitative hedge funds and retail traders led the buying, with electronics, non-banking financial firms and biotech among the most favored sectors.
• Market participants warn that rising leverage can intensify swings, though a BNY strategist says valuations still look reasonable and notes fear of missing out tied to AI and tech.
• Individual names have seen sharp moves, with AI chipmaker Cambricon more than doubling in a month and issuing a caution about investment risks.