Leveraged trading comes under regulator's glare

The capital market regulator in China is tightening its oversight on leveraged trading following concerns that it may trigger sharp volatility and even social instability.

The concern was reinforced by a tragic incident in Hunan province, when an investor jumped to his death after losing his entire investment of 1.7 million yuan ($280,000) through leveraged trading.

The 32-year-old investor, surnamed Hou, borrowed money four times his own investment and bet all of that (equal to 8.5 million yuan) on the stock of rail equipment giant China Railway Rolling Stock Corp Ltd, according to media reports over the weekend.