Shanghai, January 19, 2026, 00:19 CST — Market closed.
- ICBC A shares dropped 0.9% to 7.61 yuan, ahead of the mainland reopening on Monday
- China’s exchanges have raised the minimum margin ratio for new leveraged stock purchases, moving it up to 100% from the previous 80%
- Investors are also eyeing this week’s loan prime rate fixing for potential signals of wider easing
Industrial and Commercial Bank of China (ICBC) Class A shares fell 0.9% to close at 7.61 yuan on Friday, fluctuating between 7.58 and 7.68 yuan during the day. The state-owned lender’s stock still draws attention with a dividend yield near 4%, appealing to defensive investors despite ongoing policy uncertainties. 1
Monday’s open is key as the policy scene grows louder. Regulators want to rein in leverage but avoid crashing the rally. Meanwhile, big state banks often act as a gauge—showing if investors are shifting toward safer bets or pulling back on risk.
The Shanghai, Shenzhen, and Beijing stock exchanges announced they will increase the minimum margin ratio for leveraged securities purchases from 80% to 100%. Shanghai’s exchange clarified this adjustment only affects newly opened margin trading contracts; existing contracts and roll-overs will stick to the previous rules. 2
Margin trading means borrowing to purchase shares. Raising the minimum ratio makes investors cough up more cash for new trades, which can rein in buying fueled by leverage during periods of heavy turnover.
The tightening follows China’s securities regulator promising stronger oversight to tackle excessive speculation and market manipulation. The Shanghai Composite has climbed roughly 6% in the last month, with onshore turnover reaching nearly 4 trillion yuan by midweek, Reuters reported. 3
The People’s Bank of China is focusing on targeted support. It announced a 25 basis point cut on January 19 to “structural” monetary policy tools—those aimed at specific sectors of the economy—and hinted at more comprehensive moves later this year. “It looks like the PBOC is deploying a combination of tools except an outright policy rate cut,” said Frances Cheung, head of FX and rates strategy at OCBC Bank. 4
ICBC hasn’t released any new earnings updates recently, but it did share a governance update. The bank announced that the National Financial Regulatory Administration has approved Lee Kam Hung Lawrence as an independent director, officially confirming his appointment. 5
Downside risks persist for the sector. China’s new bank loans hit 16.27 trillion yuan in 2025, the lowest since 2018, Reuters reported, as a sluggish property market and weak demand curbed credit appetite. “New credit in 2025 was relatively weak for the year as a whole,” said Li Miaoxian, chief macroeconomic researcher at Jiangnan Rural Commercial Bank. 6
ICBC’s H shares in Hong Kong ended the session 0.16% higher at HK$6.35, providing another angle on investor sentiment for the lender. 7
Next up is simple: traders will gauge Monday’s move following the margin hike, then shift their focus sharply to rates. China sets the monthly loan prime rate (LPR) at 9:15 a.m. local time on the 20th of every month; January’s figure arrives Tuesday. 8
