June 25 (NBD) -- China's A-shares market witnessed a strong pullback with the max drawdown of the Shanghai Composite Index reaching 9 percent within the past 15 days, according to the 21st Century Business Herald. Moreover, many stocks halved in value and pledged shares were sold to meet margin calls.

It was similar to what happened on January 29 this year when the Shanghai Composite Index hit a record high of 3587.03 points. But it quickly saw a steep 15 percent drop to 3062.74 points in a mere 10 trading days.  

The wild pullback placed great pressure on bosses of many listed companies as they have realized deleveraging drains liquidity and their pledged shares face the risk of blow-up. If no effective measure was adopted, they would probably become completely passive.

In this case, they are seeking an emergent sale of equities invested in previous years to withdraw some money. However, it is not easy to find proper buyers under such circumstances. 

Email: tanyuhan@nbd.com.cn