Record loans drive Chinese market upward, authorities sound the alarm

This week, the volume of loans for stock purchases in China reached a record high of $322 billion (around €275 billion), which is an all-time high.

Investors borrowed significant sums to buy stocks, contributing to the rapid rise of the stock market, which reached a ten-year high last week.

Despite the growth, which is partly driven by optimism about new technologies and artificial intelligence, regulators are expressing concerns about a possible overheating of the market.

Banks have already restricted the use of consumer loans for investments and have also warned against the use of credit cards.

(reuters, sie)