Leverage on the Shanghai and Shenzhen exchanges fell 2.8% on Friday, or $11.7 billion, extending a four-day decline to $36.9 billion as positions were unwound.
Margin debt on the Shanghai and Shenzhen exchanges dropped 2.8% on Friday, or $11.7 billion, to $405 billion, marking the largest one-day decline since January 2016. The pullback was the fourth straight daily decrease, bringing the cumulative reduction over that stretch to $36.9 billion. The move points to a rapid unwinding of leveraged positions, a dynamic that can amplify downside pressure when investors cut exposure financed with borrowed money.