Chinese investors suffering the downside of leverage

Telegraph:

The red Yangtze river flows through ChongqingChina losing control as stocks crash despite emergency measures


Margin debt on the Chinese stock market has reached is $1.2 trillion. 'We suspect that it’s a matter of time before banks may have to face the music,' Bank of America says
The margin debt will accelerate the losses of investors.  The Chinese have already blocked short sales which would give investors and opportunity to recoup losses.

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