Pledged-share risks under control

Pledged-share risks are unlikely to spread as a systemic danger in China, as a result of government-backed funding support and market expectations of more supportive measures.

In the long run, the country needs to implement a long-term mechanism and offer a proper credit environment to help ease the financial pain of small and medium-sized enterprises - those which are most likely to be affected by market volatility, according to analysts.

Recent fluctuations in the A-share market have led concerns over credit, as companies' pledged shares for financing are likely to be cashed in.