China’s stock markets face an overhang of 5.4 trillion yuan worth of stocks pledged as borrowing collaterals, which stand the risk of being sold off as the markets continue to fall and companies are forced to deleverage to cut risks. Photo: EPA

Sell-off in China’s pledged stocks may be double Hong Kong’s GDP

With the continual decline of Chinese equities, the 5.4 trillion yuan worth of stocks pledged as borrowing collaterals stand at risk of being sold off

Topic |   China stock market

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China’s stock markets face an overhang of 5.4 trillion yuan worth of stocks pledged as borrowing collaterals, which stand the risk of being sold off as the markets continue to fall and companies are forced to deleverage to cut risks. Photo: EPA
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