China Tells Investors: Go Ahead, Bet the House on Stocks
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In China, you can now literally bet the house on the nation’s tumultuous stock market.
Under new rules announced Wednesday by the country’s securities regulator, real estate has become an acceptable form of collateral for Chinese margin traders, who borrow money from securities firms to amplify their wagers on equities. That means if share prices fall enough, individual investors who pledge their homes could be at risk of losing them to a broker.