Sentence examples for margin finance from inspiring English sources

Bright Smart Securities said that demand for margin finance plunged to 50 million Hong Kong dollars, or $6.4 million, on Tuesday from 100 million dollars on Monday.

China has arranged a curb on new share issues and enlisted brokerages and fund managers to buy massive amounts of shares, helped by China's state-backed margin finance company, the China Securities Finance Corporation (CSFC), which in turn has a direct line of liquidity from the central bank.

When its last bubble burst in 2007, the government had yet to allow margin financing.

This time, the rules have been changed to allow margin financing, and investors have taken advantage of it.

But demand from such investors for Prada's offering has been tepid, with many withdrawing margin financing orders, several brokers in Hong Kong said.

After all, margin financing is one of the reasons for people to be bullish on brokerage stocks, and these stocks have run particularly hard".

Margin financing occurs when an investor borrows funds from a brokerage firm, which in turn obtains the cash from a bank; the brokerage firm retains a margin on the value of the securities in question.

Leverage has played a big part in the rally: margin financing for share purchases has increased five-fold over the past year to more than 2 trillion yuan ($325 billion; see chart 2).

Leverage has played a far bigger part in this rally than any before it because of the introduction of margin financing, which allows investors to buy shares with borrowed money.

The amount of margin financing, whereby investors borrow from brokers and put up extra collateral if the price moves against them, has more than quintupled over the past year to 2 trillion yuan ($325 billion).

It seems clear that the extraordinary run-up in equity prices was fuelled by a surge in margin financing of stock purchases, which was legalised in 2010-2011 and encouraged by the PBOC's monetary easing since last November.