A-share margin balance at RMB 2.58 trillion; 127 stocks exceed 10% financing-to-float ratio, Kaiweite leads at
A-share margin financing balances reached RMB 2.58 trillion on August 3, equivalent to 2.69% of total circulating market value. Among margin-trade eligible stocks, 127 names had financing balances exceeding 10% of their float, led by Kaiweite at 20.23% with RMB 434 million outstanding. Exchanges may suspend margin buying when a stock's monitoring indicator hits 25%. The 127 stocks had an average float of RMB 5.85 billion, with 58 trading above 50 times dynamic earnings, concentrated in electronics, machinery, and power equipment.
On August 3, the market's margin financing balance stood at RMB 2.58 trillion, representing 2.69% of the circulating market value of A-shares. Among stocks eligible for margin trading, 127 had financing balances exceeding 10% of their circulating market value, 1,225 had ratios between 5% and 10%, 2,193 had ratios between 1% and 5%, and 297 had ratios of 1% or less.
Kaiweite had the highest financing balance relative to circulating market value, with RMB 434 million outstanding, equivalent to 20.23% of its float. Stocks such as Fujian Cement also exceeded 20%. Under exchange rules, when a single stock's margin monitoring indicator reaches 25%, the exchange may suspend margin buying on the next trading day and announce the decision to the market.
In terms of circulating market value, the 127 stocks with financing ratios above 10% had an average float of RMB 5.85 billion, indicating relatively small caps. The top ten stocks by financing ratio averaged RMB 6.03 billion in circulating value, with Kaiweite, the highest, at RMB 2.15 billion. On valuation, among stocks with financing ratios above 10%, 58 had dynamic price-to-earnings ratios above 50 times, 17 between 30 and 50 times, and 15 below 30 times. Demingli had the lowest P/E at 5.91 times, while Feinan Resources and Mulinsen had dynamic P/E ratios below 10 times.
By board, of the stocks with financing ratios above 10%, 54 were on the ChiNext, 27 on the STAR Market, and 46 on the main board. By industry, these stocks were concentrated in electronics (29), machinery (21), and power equipment (15).