81 Stocks' Margin Balance Exceeds 10% of Float; Fujian Cement Leads at 20.10%
On August 7, total margin balance on the A-share market reached RMB 2.622544 trillion, equivalent to 2.61% of float. Among margin-eligible stocks, 81 had margin balances exceeding 10% of their float, with Fujian Cement the highest at 20.10%. These 81 stocks had an average float of RMB 5.496 billion. The list includes 34 stocks with trailing P/E above 50 times, and the majority are from the ChiNext board.
On August 7, the market's margin balance stood at RMB 2.622544 trillion, accounting for 2.61% of the total float of A-shares. Among stocks eligible for margin trading, 81 had margin balances exceeding 10% of their float, 1,178 had ratios between 5% and 10%, 2,285 had ratios between 1% and 5%, and 302 had ratios of no more than 1%. The highest ratio was Fujian Cement, with a margin balance of RMB 403 million, representing 20.10% of its float. Xinkai Technology and Tianma Technology followed, with ratios of 17.94% and 16.42%, respectively.
The average float market value of stocks with margin balances exceeding 10% was RMB 5.496 billion, indicating generally small float sizes. The top 10 stocks by margin balance ratio had an average float of RMB 5.163 billion, with Fujian Cement's float at RMB 2.007 billion. According to trading rules, when a single stock's margin monitoring indicator reaches 25%, the exchange may suspend margin buying on the next trading day and disclose the action to the market.
Valuation-wise, among the stocks with margin balances exceeding 10%, 34 had trailing P/E ratios above 50 times, 11 had ratios between 30 and 50 times, and 11 had ratios below 30 times. The lowest was Qingfangcheng with a trailing P/E of 3.44 times. Taishan Petroleum and Zhenjiang Co. also had trailing P/Es below 20 times. By board, 37 were on the ChiNext, 12 on the STAR Market, and 32 on the main board. By industry, the majority were in electronics, machinery and equipment, and power equipment, with 15, 12, and 11 stocks, respectively.