A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters
A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters

Stocks loaned as collateral pose broader financial risk as China market slump builds

With trillions of yuan of shares pledged as collateral, concern is raised over knock-on effects on financial system if prices fall further

A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters
A doubling of benchmark indices in a year has seen cash-hungry owners and executives of listed companies borrowing money using their holdings as collateral. Photo: Reuters
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