The margin balance stands at 2.3 trillion, and securities firms are increasing limits to attract customers and seize the market

Since the beginning of this month, the A-share market has experienced fluctuations and adjustments, yet the enthusiasm of margin traders remains unabated, with the margin balance climbing to over 2.3 trillion yuan. Securities firms are also seizing market opportunities to expand their related business scale. According to a recent announcement from Hualin Securities, the total scale of its credit business has been raised to 8 billion yuan, which includes margin trading, stock pledge repurchase transactions funded with its own capital, agreed repurchase securities transactions, and other credit businesses. At the end of March, Hualin Securities had adjusted this business scale to 6.2 billion yuan. This year, the overall A-share market has shown a trend of fluctuating upward, with market trading remaining active, especially in the past two months, where the margin balance has been steadily increasing. Several securities firms are offering financing rates ranging from 4% to 5.5% for new margin trading clients. "In recent years, traditional income for brokerage firms has significantly declined, with a reduction in the number of high-frequency trading clients, while also facing a drop in commissions. Against this backdrop, some smaller brokerage offices are transforming by utilizing margin trading, options, or equity pledges," a manager from a medium-sized brokerage office told reporters. In the credit business of securities firms, margin trading is the core pillar, and changes in its scale have a significant impact on the performance of brokerage firms. According to Wind statistics, in the first half of this year, many listed brokerage firms have seen an increase in interest income from margin trading