Preface

The recent surge in the opening of financing and margin trading (FMT) accounts in China's A-share market has reached a remarkable new peak. According to the China Securities Depository and Clearing Corporation (CSDC), September saw an unprecedented 205,400 new FMT accounts, marking a historical high for the year. This represents a 12.24% increase from August's 183,000 accounts, and a staggering 288% increase compared to the same period last year.

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In response to soaring demand, brokers are balancing business growth and risk management. The total number of FMT accounts has now reached over 15 million, with remarkable growth in quarterly transactions.

Main Body

The A-share market continues to attract a substantial number of investors, with recent data highlighting a significant upsurge in the creation of financing and margin trading (FMT) accounts. Such accounts provide investors with greater leverage power, amplifying both potential returns and risks. As of the end of September, the total number of FMT accounts reached a substantial 15.29 million.

In recent months, an upward trend has been evident. For example, while January 2025 saw the opening of just 70,000 new accounts, consistent growth was observed throughout the year, culminating in 205,400 new accounts in September. This represents not only a monthly high for the year but also underscores a long-term growth trajectory in investor interest in FMT activities.

The market's vibrancy is further reflected in the rising balance of financing activities. By the end of Q2 2025, the balance of A-share financing increased from 1.85 trillion yuan to 2.39 trillion yuan, a quarterly growth rate of 29.19%. This upward trend continued into mid-October, with the balance reaching approximately 2.45 trillion yuan, as per figures from Wind data.

Faced with such overwhelming demand, several securities firms have proactively increased their credit business limits. Zhejiang Securities, for instance, lifted its limit from 400 billion yuan to 500 billion yuan in late September. Hualin Securities adjusted its credit scale twice within the year, raising it from 62 billion yuan in March to 80 billion yuan by September 9.

In discussing these adjustments, a Hualin Securities executive remarked to China Securities Journal, “The recent favorable market dynamics and rapid expansion of the FMT market have intensified investor demand. Our latest adjustment aimed to better seize market opportunities and meet our clients’ needs.”

However, brokers face the challenge of balancing aggressive business expansion with vigilant risk control. It is a continuous struggle to identify the optimal point between expanding business operations and strictly managing financing margin ratios to maintain sustainable growth.

In light of the accelerating financing demands, Hualin Securities announced on September 29 that it would standardize the financing margin ratio for securities on the Shanghai and Shenzhen exchanges to 100%, effective October 13, 2025. A company's spokesperson explained that although the demand has spurred an increase in the total scale of accounts, an effective risk management strategy was needed given the rapid growth in financing balances.

Hualin Securities is not alone in this realm of risk adjustment. Prior, on August 25, Guojin Securities announced a similar adjustment, increasing the financing margin ratio from 80% to 100% for securities outside the Beijing Stock Exchange as of August 27.

The impact of adjusting these ratios is directly felt by investors, who find that increasing the margin ratio reduces their leverage capabilities. The shift from 80% to 100% means that for the same amount of margin, investors now have a reduced capacity to finance. Nevertheless, across the industry, many brokers have maintained this critical ratio at 80%.

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