Shanghai, Jan 19, 2026, 07:05 GMT+8 — Premarket
- Foxconn Industrial Internet’s Shanghai-listed Class A shares closed up on Friday.
- Starting Monday, China’s exchanges will enforce stricter rules on leveraged stock purchases.
- Traders are eyeing China’s GDP and activity figures scheduled for release Monday for fresh signals.
Foxconn Industrial Internet Co., Ltd.’s Class A shares in Shanghai (601138.SS) ended Friday at 63.00 yuan, climbing 3.64%. The stock fluctuated between 61.20 and 64.00 during the session, with 262.6 million shares changing hands. (Investing)
The close now falls beneath a new policy headline. Mainland exchanges are cracking down on borrowing to buy stocks, just as traders weigh the next move in a packed rally.
Timing is key. Margin financing, at its core, means investors borrow money to purchase shares, but this can push a market into a one-way bet. When regulations shift, the initial impact typically hits the most liquid and widely held stocks first.
China’s securities regulator promised tougher market oversight and vowed to clamp down on “excessive speculation,” highlighting frenzied trading in sectors like artificial intelligence, aerospace, and robotics. The exchanges announced they will hike the minimum margin requirement for new borrowings from 80% to 100%, starting Jan. 19. This move follows a 6% jump in the Shanghai Composite over the last month and record onshore share turnover nearing 4 trillion yuan on Wednesday, according to Reuters. (Reuters)
The Shanghai Stock Exchange announced the change is designed to “moderately reduce leverage” and safeguard investors, citing a busy margin-trading scene and abundant liquidity. It clarified that the increased margin ratio affects only new margin trading contracts, while existing contracts and roll-overs will retain their previous conditions. (Shanghai Stock Exchange)
Macro policy is shifting. China’s central bank announced it will slash rates on structural policy tools by 25 basis points on Jan. 19 and broaden a tech-innovation re-lending program. Economists view these moves as an early-year signal to boost growth. “It probably won’t take very long to see a full policy rate cut,” said Tianchen Xu, senior economist at the Economist Intelligence Unit. (Reuters)
Foxconn Industrial Internet recently completed a cash dividend payout, announcing a distribution of 3.3 yuan per 10 shares. The record date was set for Jan. 15, with the ex-dividend and payment scheduled for Jan. 16, according to a report from Sina Finance referencing the company’s announcement. (Sina Finance)
China’s market will shift focus Monday with the National Bureau of Statistics set to drop its “National Economic Performance” report on Jan. 19 at 10:00. This includes key monthly data like industrial production, retail sales, fixed-asset investment, real estate, and the jobless rate. (National Bureau of Statistics of China)
Economists at S&P Global Market Intelligence project China’s Q4 GDP to increase 4.5% year-on-year. They identified the same set of activity indicators as the key test for whether growth is pivoting toward domestic demand. Their week-ahead calendar highlights the mainland loan prime rate decision scheduled for Tuesday, Jan. 20. (S&P Global)
The path isn’t smooth. Higher margin requirements can suck liquidity out of momentum trades and usually hit hardest when the crowd piles in on one side. Should Monday’s data disappoint or regulators clamp down further on “excessive speculation,” expect sharp profit-taking in high-beta, tech-related stocks.
Traders will be eyeing early-session volumes for Foxconn Industrial Internet on Monday, looking for any hints that the leverage restrictions are shifting market dynamics. Aside from the macro calendar, Eastmoney’s corporate schedule shows the company’s annual report is due on March 11. (Eastmoney)
