# Deleveraging

China’s Market Rally Hits a Wall: Shanghai Index Slips Below 4,200 as Deleveraging Risks Loom

The Shanghai Composite Index fell below 4,200 points on May 14 as over 4,300 stocks declined amid record-high trading volumes. While consumer staples offered a minor defensive hedge, the broader market is under pressure from massive margin lending balances and tightening brokerage risk controls.