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Publication - Dr Lerong Lu

    Unveiling China's Stock Market Bubble

    Margin Financing, the Leveraged Bull and Governmental Responses

    Citation

    Lu, L & Lu, L, 2017, ‘Unveiling China's Stock Market Bubble: Margin Financing, the Leveraged Bull and Governmental Responses’. Journal of International Banking Law and Regulation, vol 32., pp. 146-160

    Abstract

    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.

    Full details in the University publications repository