Brokerages Deny Widespread Margin Call Liquidations Amid Social Media Rumors

Social media posts circulated on Monday afternoon claiming that margin financing accounts had been hit by concentrated liquidations and that brokerages were carrying out bulk forced selling, which raised investor concerns. According to Odaily, brokerages interviewed said the actual situation differed from the rumors and that overall risks in margin financing business remain manageable. The brokerages said there is no widespread or concentrated forced liquidation taking place. They added that while some accounts have reached warning or margin call levels, forced liquidation has occurred only in individual cases.