China's capital market witnessed a substantial expansion in margin trading and securities lending business in 2025, serving as a core indicator of heightened market activity. Data reveals that 1.5421 million new margin trading accounts were opened throughout the year. How should this figure be interpreted? The 1.5421 million new accounts set the highest record in nearly a decade, representing an increase of 533,600 accounts compared to 2024—a surge of over 52%. Furthermore, it marks an almost fourfold increase from the cyclical low of 403,400 accounts in 2018. By the end of 2025, the total number of margin trading accounts had surpassed 15.64 million, achieving a leapfrog growth compared to the end of 2024. Concurrently, the total outstanding margin balance across the market rose to 2.52 trillion yuan from 1.85 trillion yuan at the end of 2024, an increase exceeding 36%, underscoring investors' fervent participation in margin trading activities.
Examining the timeline, the pace of new account openings in 2025 was steady, with a pronounced acceleration in the second half of the year. September recorded the highest monthly figure for the year with 205,400 new accounts, while August, March, November, and December each saw openings exceeding 140,000 accounts, at 183,000, 144,500, 140,700, and 147,100 respectively. This growth momentum stems from a confluence of robust market demand and strategic deployment by securities firms. The industry-wide growth in margin trading business was concentrated between 25% and 40%, with leading brokers and regional medium-sized securities firms leveraging their respective strengths. Numerous brokerages raised their business scale ceilings to accommodate the surging demand.
Capital flows exhibited distinct directional trends, with hard technology and high-end manufacturing emerging as the primary investment channels. Sectors such as hardware equipment, semiconductors, and electrical equipment saw significant proportions of net margin buying. Technology leaders like Xinyisheng and Zhongji Innolight were particularly favored by investors. This capital allocation aligns closely with the national industrial upgrade strategy, demonstrating leveraged funds' strong preference for high-quality core assets.
The number of new margin trading accounts opened in 2025 reached its highest level in nearly a decade, reflecting a significant boost in activity within the A-share market's financing and securities lending sector. Data indicates that the total number of new accounts opened throughout the year reached 1.5421 million. By the end of 2025, the total number of outstanding margin trading accounts in the entire market had broken through the 15 million mark, reaching 15.6402 million, a substantial increase from the 14.3593 million accounts recorded at the end of 2024.
Comparing annual data, the number of new accounts opened in 2025 far exceeded the levels seen in the previous decade. During the period from 2016 to 2024, the peak for new margin account openings was 1.0452 million in 2020. The 2025 figure represents an increase of approximately 47.5% over this previous peak and a robust growth of over 52.9% compared to the 1.0085 million accounts opened in 2024.
Analyzing the monthly performance, the momentum for opening new margin accounts was particularly strong in the second half of 2025. September stood out as the most active month, with 205,400 new accounts, the highest single-month figure for the year. August also saw openings surpassing 180,000, reaching 183,000 accounts. Furthermore, March, November, and December each recorded monthly new account openings exceeding 140,000, with figures of 144,500, 140,700, and 147,100 respectively. The remaining months maintained a steady pace with over 70,000 new accounts each, indicating a robust and consistent opening rhythm throughout the year.
The growth in margin trading business reflects a synergistic result of market demand and proactive strategic layout by securities firms. Research indicates that securities firms of various sizes experienced significant growth in their margin trading operations in 2025, with industry-wide increases generally concentrated in the 25%-40% range. Leading brokers, leveraging their capital strength and extensive client resources, performed especially prominently. Meanwhile, regional medium-sized securities firms demonstrated rapid expansion, with some institutions reporting surges in their financing balances of 30% to 40%, illustrating a landscape of shared prosperity amid differentiated competition strategies.
In response to the continuously heating market demand, securities firms have been actively adjusting their business rules to capture market share. Statistics show that in 2025 alone, at least eight brokerages successively raised the upper limits for their financing-related business scales. These included major institutions such as Changjiang Securities, Orient Securities, Huatai Securities, and China Merchants Securities, as well as small and medium-sized brokers like Zhejiang Securities and Chinalin Securities. Additionally, Soochow Securities specifically adjusted the total credit scale for its margin trading and securities lending business to better cater to client needs.
Notably, to reasonably manage financing quotas, some securities firms implemented "traffic control" measures. In September, Chinalin Securities announced that, effective October 13th, it would adjust the margin ratio for securities eligible for margin trading on the Shanghai and Shenzhen exchanges to 100%, while existing contracts would maintain their original ratios. This was a flow-limiting measure following Chinalin's earlier increase in its margin trading scale ceiling. In August, Guojin Securities had already taken the lead by adjusting the margin ratio for eligible securities (excluding those on the Beijing Exchange) to 100%. The actions of these two firms reflect a prudent attitude towards business risk and, from another angle, confirm the intense heat of current market financing demand.
The fervor in the margin trading and securities lending business has also intensified competition on interest rates, pushing the industry's lower bounds even lower. Eligible investors can now apply for specialized annualized rates as low as 3.5%, representing a significant reduction from the standard default rates. According to the latest industry data, the default margin financing interest rates offered by brokers generally fall within the 4%-5% range. However, through negotiation, investors with different capital amounts and trading activity levels can obtain tiered interest rate discounts. Rates below 4% have become a key tool for leading brokers to compete for high-quality clients.
It is understood that these preferential interest rates are primarily concentrated among top-tier brokers such as CITIC Securities, Guotai Haitong Securities, and China Galaxy Securities. For instance, Guotai Haitong offers new margin trading clients who meet a 500,000 yuan capital threshold and commit to a monthly average financing transaction volume exceeding 200,000 yuan an introductory rate as low as 3.5% for the first three months, which can be maintained below 3.8% thereafter for stable trading activity. CITIC Securities negotiates long-term rates between 3.5% and 3.8% for clients with average daily assets exceeding 1 million yuan. China Galaxy Securities provides a exclusive rate of 3.5% for high-net-worth clients with over 5 million yuan, with rates potentially dropping as low as 2.78% for those with 10 million yuan.
It is important to note that the current sub-4% low rates are part of specialized preferential policies and require application through dedicated channels, typically via a dedicated client manager. Opening an account directly through a broker's app does not grant access to these benefits. When setting rates, brokers comprehensively price based on the investor's capital amount, trading frequency, and account opening channel. Generally, the larger the capital scale and the more active the trading, the greater the leverage for negotiating a lower rate. Even ordinary investors with capital between 500,000 and 1 million yuan can often negotiate their rates down to around 4% through communication with a client manager.
From an industry distribution perspective, margin financing flows in 2025 displayed distinct characteristics, with hard technology and high-end manufacturing becoming the core sectors attracting capital. Among the top ten industries by net margin buying, Hardware Equipment led decisively with a margin purchase amount of 171.72 billion yuan and an outstanding margin balance of 364.358 billion yuan, making it the most favored area for margin trading funds. Electrical Equipment and Semiconductors followed in second and third place, with margin purchase amounts of 79.297 billion yuan and 77.219 billion yuan respectively, and both boasting outstanding balances exceeding 180 billion yuan. Manufacturing sectors such as Nonferrous Metals, Machinery, Automobiles & Components, and Chemicals also received significant capital allocation, each with margin purchase amounts surpassing 35 billion yuan. Industries like Pharmaceuticals & Biotechnology, Software Services, and Banks also made it into the top ten, indicating that while margin funds are heavily focused on high-end manufacturing, they also maintain allocations in consumer and financial sectors.
This industry distribution clearly shows that the flow of margin trading funds is highly aligned with the direction of national industrial upgrading. At the individual stock level, technology companies were the focal point of margin purchases. Xinyisheng topped the list with a margin purchase amount of 17.736 billion yuan and an outstanding balance of 20.326 billion yuan. Zhongji Innolight and Victory Giant Technology followed closely, each with margin purchase amounts exceeding 15 billion yuan. CATL, a leader in the new energy sector, recorded a margin purchase amount of 15.19 billion yuan and an outstanding balance of 21.622 billion yuan, ranking fourth. Integrated circuit firms like Cambricon and SMIC, as well as photovoltaic equipment companies such as Sungrow Power Supply, also featured prominently in the top ten, underscoring the market's high recognition for companies with core technologies and leading positions in their industrial chains.
Analyzing the sectors of the top ten stocks, they are primarily concentrated in Communication Equipment, Electronic Components, Integrated Circuits, Photovoltaic Equipment, and Industrial Machinery. This distribution highly coincides with the top ten industries for net margin buying, further highlighting the strong preference of capital for the technology and manufacturing track. These stocks are mostly industry leaders with significant technological advantages and strong market competitiveness, making them key targets for investors seeking to amplify returns through margin trading leverage.