As of May 25, 2026, the margin trading balance in China’s A-share market surpassed 2.9 trillion yuan for the first time, reaching 2,903.54 billion yuan. The milestone reflects a notable pickup in leveraged activity and rising investor confidence amid improving liquidity and risk sentiment.
On the same day, the People’s Bank of China injected strong short-term liquidity via a 448-billion-yuan 7-day reverse repo operation, keeping interbank funding conditions stable ahead of the quarter-end. The central bank’s steady liquidity support has underpinned equity market performance and kept financing costs in check.
Meanwhile, the onshore yuan closed at 6.7837 against the U.S. dollar, jumping 110 basis points to its strongest level since February 2023. The firming yuan mirrors improving domestic sentiment, solid export data, and continued foreign inflows into Chinese equities and bonds.
Market participants noted that the surge in margin balance has been concentrated in high-end manufacturing, AI-related sectors, and consumer        electronics, while blue-chip financial and energy stocks have seen moderate profit-taking. The combination of ample liquidity, a stable renminbi, and solid economic recovery signals suggests the A-share market may retain upward momentum in the near term.
Institutional investors remain cautiously optimistic, expecting continued policy support for new productive forces and consumption recovery. They warn, however, that rapid leverage expansion requires close monitoring to prevent excessive risk buildup.