A-Share Margin Balance Reaches 2.62 Trillion Yuan, 143 Stocks Exceed 10% Ratio, Fujian Cement Tops at 21.25%
As of July 29, the total margin balance on China's A-share market stood at RMB 2.62 trillion, representing 2.72% of the free-float market capitalization. Among stocks eligible for margin trading, 143 had a margin balance exceeding 10% of their free-float market cap. Fujian Cement led with a ratio of 21.25%, followed by Kaiwei Te and Xinkai Technology at 19.78% and 19.08%, respectively. Stocks with high margin ratios had an average free-float market cap of RMB 56.14 billion, with 66 listed on ChiNext, 28 on the STAR Market, and 49 on the Main Board. The electronics, mechanical equipment, and electrical equipment sectors were most represented.
As of July 29, the total margin balance on the market stood at RMB 2.62 trillion, accounting for 2.72% of the free-float market capitalization of A-shares. Among stocks eligible for margin trading, 143 had a margin balance exceeding 10% of their free-float market cap, 1,265 had a ratio between 5% and 10%, 2,130 had a ratio between 1% and 5%, and 302 had a ratio of 1% or less.
Fujian Cement had the highest margin balance as a percentage of free-float market cap, with a margin balance of RMB 407 million, representing 21.25% of its free-float market value. It was followed by Kaiwei Te and Xinkai Technology, with ratios of 19.78% and 19.08%, respectively. Under trading rules, when a stock's margin monitoring indicator reaches 25%, the exchange may suspend margin buying on the next trading day.
In terms of free-float market capitalization, stocks with a margin balance ratio above 10% had an average free-float market cap of RMB 5.61 billion, indicating generally small free-float sizes. The top ten stocks by margin ratio had an average free-float market cap of RMB 5.96 billion, with Fujian Cement's latest free-float market cap at RMB 1.92 billion. On valuation, 57 of these stocks had a trailing P/E ratio above 50 times, 22 had a ratio between 30 and 50 times, and 20 had a ratio below 30 times. The stock with the lowest P/E was Qingfangcheng, with a trailing P/E of only 3.39 times.
By board, among stocks with a margin balance ratio above 10%, 66 were listed on ChiNext, 28 on the STAR Market, and 49 on the Main Board. By industry, these stocks were concentrated in the electronics, mechanical equipment, and electrical equipment sectors, with 26, 20, and 18 stocks, respectively.