Preface

The Chinese stock market has seen intriguing trends with the margin trading balance, as two consecutive days of increase have set a new record. This article explores the recent dynamics and shifts in investor interest across various industries. We aim to provide a detailed analysis of the factors influencing these changes and highlight the implications for investors.

Lazy bag

The margin trading balance in the A-share market in China has grown, hitting yet another record on October 14. Notably, there has been a shift in investor focus within different sectors, with margin inflows changing dynamics.

Main Body

The recent increase in the margin trading balance within China's A-share market is a phenomenon garnering significant attention. As of October 14, 2025, the combined margin trading balance of the Shanghai, Shenzhen, and Beijing stock exchanges reached a historic height of 2,446.9 billion yuan, marking a daily increase of nearly 26 billion yuan. This rise highlights the volatile nature of finance, particularly with fluctuations observed since mid-September. For instance, while there was a drastic reduction in late September with a single-day drop exceeding 30 billion yuan, the opening day post the National Day holiday saw a staggering increase exceeding 50 billion yuan.

The financing balance, part of the overall margin trading balance, shows a parallel trend. As of October 14, it also set a new benchmark of 2,430.2 billion yuan, with a daily rise of more than 23 billion yuan. Observing the industry's disposition towards different investments reveals subtle shifts in appeal among various sectors.

According to Wind data, from early October to October 14, most industry sectors witnessed net financing buys, with some sectors leading significantly. The non-ferrous metals sector surged ahead with net buys exceeding 100 billion yuan, followed by the electrical equipment sector at over 50 billion yuan. Sectors including semiconductors, software services, chemicals, and non-bank finance also reported notable net financing buys during this period.

This distribution of capital flow notably contrasts with September's trend, where the TMT (Technology, Media, Telecom) track industries dominated. During that month, hardware equipment stood out with financing net buys exceeding 300 billion yuan, with electrical equipment and semiconductors trailing closely. The non-ferrous metals sector was positioned sixth, with about 86 billion yuan in net buys.

Stock-wise, there has been a notable movement. From early October to October 14, stocks such as ZTE, Zijin Mining, Baosteel, Eastmoney, and Northern Rare Earth reported strong net buys, each surpassing 10 billion yuan in net financing buys. Meanwhile, notable companies such as CATL, Kingsoft Office, WuXi AppTec, Hikvision, Huayou Cobalt, and others were prominently visible within market dynamics.

Interestingly, certain popular stocks within the TMT sectors reported net negative financing buys over the same period. Companies like Cambridge Technology, Foxconn Industrial Internet, SMIC, Zhongji Xuchuang, Topology Group, and others showed larger financing repayments than financing buys. This observation underlines the marked variation in investor behavior and the importance of adapting to shifting market trends.

Key Insights Table