Published Mon, Feb 2, 2026 · 08:16 PM
THE highest levels of margin debt used to buy stocks since the global financial crisis offer a clue as to why Asian shares tumbled, following a sell-off in precious metals.
The value of outstanding margin debt on China’s stock exchanges climbed to a record last week – amid soaring inflows into gold and silver exchange-traded funds (ETFs).
Similar measures for Taiwan and Japan surged to levels last seen in the financial crisis as gold, silver and global equities advanced to all-time highs.
The swiftness of the two-day pullback in precious metals and stocks is fuelling speculation – that some leveraged investors are being compelled to sell assets across their portfolios to meet funding…