Some Chinese Are Taking 22% Margin Loans to Finance Stock Purchases
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Zhang Minmin is one of tens of thousands playing in one of the riskier corners of China’s stock market, borrowing money at high interest rates through unregulated online lenders to amplify his bets on potential equity gains.
“Sometimes when the market is good, I would make profits enough to buy an Audi in just a week or two. However, when the market is down, it’s also possible to lose half an Audi very quickly,” said Zhang, a 32-year-old who works in the financial industry in Hangzhou, a city near Shanghai.