The A-share market has seen a significant influx of incremental funds since April, with margin financing becoming one of the most noticeable main forces in this stage. From the change in margin balance, this trend is quite evident. After entering April, margin funds began to enter the market at an accelerated pace. Data shows that as of May 7, the margin balance of the two markets has climbed to 2.77 trillion yuan, setting a new high for the year. This number was only 2.59 trillion yuan at the beginning of April. In just over a month, the net margin buying amount reached 175.868 billion yuan. In April alone, the net buying amount reached 105.1 billion yuan. This speed is not seen very often in the market in the past two years. Looking back at several months in the past two years when margin funds saw significant growth: October 2024, August and September 2025, January and April 2026, leveraged funds have experienced similar aggressive surges. Looking at more indicators, since April 8, the daily margin buying amount has consistently remained above 200 billion yuan, breaking through the 300 billion yuan mark on May 6 and 7 consecutively, reaching a new high since the increase in margin ratio in January. At the same time, on May 6, the daily margin net buying amount reached 41.165 billion yuan, with the margin buying amount accounting for 10.79% and 10.56% of A-share turnover on May 7, respectively, also setting new records after adjusting the margin ratio. It is worth noting that after analyzing data from multiple dimensions, it was found that the significant increase in margin funds this time is more a result of increased investor participation, as the overall market leverage ratio has not risen significantly in sync. In other words, there are more margin clients and more active trading, but leverage ratios have been "put on safety belts." Margin clients' expansion, increased participation An easily overlooked detail is that the significant increase in margin funds this time is more a result of increased investor participation, rather than a significant increase in the overall market leverage level. In other words, more people are borrowing money to invest, but the average amount borrowed per person has not changed significantly. Using January's margin trading data as a reference, perhaps it can be seen more clearly. In January, before the adjustment of the margin ratio, multiple margin trading indicators were at highs since the 924 market. On January 14, the Shanghai and Shenzhen stock exchanges raised the minimum margin ratio from 80% to 100%. This adjustment to some extent limited the leverage ratio of the entire market. The situation since April: The highest number of investors participating in margin trading reached 600,000, another high point since the active margin trading in January. The number of investors with margin and short-selling liabilities exceeded 1.9579 million people, directly setting a new high since the 924 market. In April, the "number of investors with margin and short-selling liabilities" indicator entered the top ten since the 924 market on 7 trading days. In other words, more and more investors are opening and actively using margin trading accounts. From the participation indicator perspective, the percentage of investors participating in margin trading, the percentage of investors with margin and short-selling liabilities, average margin balance per account, etc., have all been at levels second only to January since the beginning of this year. As of the end of April, the margin balance as a percentage of A-share market capitalization was 2.56%, lower than the level in January this year. Looking at the ratio of margin buying amount to A-share turnover, this indicator reached a maximum of 10.79% in April, compared to approximately 11.47% in January (before the margin ratio adjustment). These data collectively point to one conclusion: the current activity of leveraged funds is more reflected in the expansion of the number of participants, rather than an increase in the leverage ratio of individual investors. From this perspective, the incremental structure of the market appears to be healthier. Technology stocks become the main battleground for leveraged funds in this round Historically, the frenetic pace of margin funds often accompanies the rise of technology stocks. The logic behind it is not complicated - technology stocks have high volatility, making them attractive targets for leveraged funds. This time is no exception, with the net buying amount for hardware equipment and semiconductor industries totaling as high as 114.925 billion yuan, accounting for 60% of the total net margin buying amount. This means that for every 10 yuan of leveraged funds flowing in, more than 6 yuan is invested in hardware equipment and semiconductors. Looking at the industry distribution, the industry with the highest net margin buying amount since April is hardware equipment, with a net buying amount of 63.257 billion yuan. Following that is the semiconductor industry with a net buying amount of 51.668 billion yuan. The combined net buying amount of these two major industries accounts for around 60% of all net margin buying. In other words, the preference of leveraged funds is highly concentrated, almost entirely focused on the technology industry chain. Non-ferrous metals rank third with a net buying amount of 20.127 billion yuan, while industries such as chemicals, machinery, and biopharmaceuticals also saw varying levels of fund inflow. However, compared to the technology sectors, the difference is noticeable. On the other end, industries such as utilities, coal, automobiles and auto parts showed net fund outflows, with utilities seeing a net outflow of 1.513 billion yuan and coal a net outflow of 1.216 billion yuan. Looking at the proportion of margin balance to market cap, the semiconductor industry reached 2.53%, non-bank financial 2.55%, non-ferrous metals 1.59%, and pharmaceuticals 1.55%. These numbers indicate that in these industries, leveraged funds already have considerable pricing power. Semiconductor and hardware equipment stocks dominate net buying rankings Looking at individual stocks, the preference of leveraged funds is more apparent. In terms of individual stocks, the highest net buying amount since April is Hanwei, with a net buying amount of 7.307 billion yuan, pushing the margin balance to 22.241 billion yuan, accounting for 2.99% of the market cap. This is followed by Zhaoyi Innovation with a net buying amount of 6.183 billion yuan; Biwi Storage ranks third with 5.938 billion yuan; Demingli ranks fourth with a net buying amount of 5.05 billion yuan. These four stocks all belong to the semiconductor industry. In the top twenty, the semiconductor and hardware equipment sectors dominate. Names like Dongshan Precision, Lanqi Technology, Haiguang Information, Huagong Technology, Dazhu Laser, Hengtong Optoelectronics, XinYuan Shares, Shenghong Technology, Tianfu Communication, Industrial Rich, Zhongji Xuchuang...these names are almost the "star stocks" in the current A-share technology sector. It is worth noting that...It is worth noting that the proportion of financing balance of some individual stocks to their market capitalization has reached a relatively high level. Delixi's ratio is as high as 9.04%, Baixi Storage is 6.44%, Huagong Technology is 6.88%, Shenghong Technology is 6.05%, and Zhaoxin Innovation is 5.88%. These are all signals of a high degree of control by the financing plate.A private equity fund manager told reporters, "The financing balance as a percentage of the market value has exceeded 5% or even close to 10%, indicating that the marginal pricing power of these individual stocks has been trending towards financing clients. If the industry trend continues to improve, the financing plate will become an accelerator; but if there are negative factors, the risk of stampede cannot be ignored." This article is reprinted from "Caishen News" and edited by GMTEight: Liu Jiayin.