Margin curbs send equities plunging

Benchmark declines by 7.7%, biggest loss since global financial crisis

The mainland stock market recorded its biggest loss on Monday since the global financial crisis of 2008 after the securities regulator reined in margin lending, but analysts said the bull market still has further to run.

Besides forbidding some brokerages from opening new margin accounts, media reports said that the authorities are likely to accelerate initial public offerings in the coming months to soak up some of the liquidity that has been driving a sharp rally.