In July 2026, the A-share leveraged capital market experienced extreme divergence, as the combined margin trading balance across the Shanghai, Shenzhen, and Beijing exchanges shrank sharply by 409.069 billion yuan in a single month, setting the year's largest monthly deleveraging record. Leveraged funds concentrated in the previously hot technology growth sector retreated en masse, with the margin balances of over a hundred stocks nearly halving. Meanwhile, the margin balances of obscure small- and mid-cap names such as Longci Technology, Jack Technology, Zhongli Group, and Jiamei Packaging surged more than twentyfold in a single month. Li Shiyu, fund manager at Xiaoyu Investment, told the China Times that currently, the national team is providing support near the 3,800 level, so the Shanghai Composite Index's 3,741 level is already the market bottom. The market will now spend time oscillating and building a base to absorb the overhead supply. Entering August, market leverage sentiment remains cautious. On August 3, the total market margin balance fell back to 2.602527 trillion yuan, with the pace of deleveraging somewhat slowing.
Zhongli Science and Technology Group Co Ltd
Jiamei Food Packaging Chuzhou Co
Sinomag Technology Co Ltd
Jack Sewing