L Lu and L Lu, ‘Unveiling China’s Stock Market Bubble: Margin Financing, the Leveraged Bull and Governmental Responses’ in JIBFL (2017), Vol.32(4)

stockmarketcrash

In April 2017, Dr Lerong Lu and Ms Longjie Lu (PhD Candidate, School of Law, University of Leeds) published an article in the  Journal of International Banking Law & Regulation. From 2014–15, China witnessed a super bull in its stock market, as the major SSE Composite Index was more than doubled, but it was followed by an unprecedented crash triggering a global sell-off. This article argues that margin trading, which means investors that borrow money from stock brokers or shadow banks to purchase shares, accounted for the stock bubble.

Citation: Lerong Lu and Longjie Lu, ‘Unveiling China’s Stock Market Bubble: Margin Financing, the Leveraged Bull and Governmental Responses’, Journal of International Banking Law & Regulation (2017), Vol.32(4), pp.146-160.
Publisher: Sweet and Maxwell
Key Words: Securities Law, China, Stock Markets, Securities Regulation, Margin Finance

Download this paper from Academia.edu

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