A month later, by April 15, the combined balance of margin trading and short selling in China's A-share market had rebounded to RMB 2.65 trillion. This marked the seventh consecutive trading day of growth, with daily increases surpassing RMB 10 billion over the past four sessions. Leveraged funds have predominantly flowed into technology sectors, including electronics, power equipment, and communications. Industry experts attribute the resurgence of leveraged funds to multiple drivers, with market sentiment playing a pivotal role in accelerating the trend. On April 16, the ChiNext Index soared to an 11-year high, as financing positions surged, focusing on a select group of leading technology stocks. However, the industry warns of potential risks, including the possibility of deleveraging if market sentiment reverses and the pressure of valuation corrections due to performance falling short of expectations.
