Market Updates

China Indexes Turned Volatile After Regulators Tightened Margin Rules

Li Chen
15 Jan, 2026
Hong Kong

    China's indexes turned volatile amid elevated geopolitical uncertainties and a clouded macroeconomic outlook. 

    The Hang Seng Index decreased 0.4%, the CSI 300 index declined 0.2%, and benchmark indexes erased early morning gains. 

    Investors held out for improving earnings for domestic companies as mainland-based businesses expanded manufacturing bases in the ASEAN region, Africa, and Latin America. 

    Moreover, investors are estimating China's GDP growth to slow to 4.5% in 2026, the jobless rate to hover near 7%, and additional support to revive the residential market. 

    China's offshore yuan traded at 6.96 against the U.S. dollar, and investors avoided the U.S. dollar-denominated assets after the U.S. president renewed threats on the Federal Reserve's independence. 

    Market sentiment weakened after Chinese regulators raised the minimum margin for stock financing to 100% from 80%, as policymakers push to curb excessive speculation in capital markets.  

     

    China Indexes and Stocks

    The Hang Seng Index decreased 0.4% to 26,883.54, and the CSI 300 Index declined 0.2% to 4,731.15. 

    Defense and technology stocks led decliners in Shanghai and Hong Kong trading. 

    BlueFocus Intelligent decreased 14.7% to ¥18.45, China Spacesat dropped 10.4% to ¥106.83, and Leo Group fell 3.1% to ¥9.64. 

    Trip.com Group plunged 20% to HK $457.60 after China launched an antitrust investigation into the company's business practices. 

    Sun Hung Kai Properties increased 2.2% to HK $111.0, China Vanke added 1.8% to HK $3.42, and Longfor Group added 1.5% to HK $9.34. 

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