China's AI Stock Frenzy: Record Turnover Triggers Regulatory Clampdown
Share Market
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CNBC Awaaz•20-01-2026, 06:58
China's AI Stock Frenzy: Record Turnover Triggers Regulatory Clampdown
- •China's stock market is under regulatory scrutiny after AI-tech stocks fueled record turnover, surpassing $556 billion.
- •Regulators tightened margin financing rules, increasing margin requirements from 80% to 100% to curb leveraged buying.
- •The CSI 300 index hit a 4-year high, with Morgan Stanley's sentiment indicator showing an 'overheated' market.
- •The rally is primarily driven by domestic retail investors, who account for 90% of daily turnover.
- •Regulators aim for a 'slow bull' market to control speculative excess, especially in AI and tech sectors.
Why It Matters: China's stock market sees record turnover driven by AI stocks, prompting regulators to tighten margin rules.
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