The result was a broad liquidation of any unencumbered assets by the creditors, which forced Chinese authorities to intervene and demand that banks become more lenient in demanding loan repayment, effectively implementing yet another stealthy bailout of Chinese markets.

Commenting on China's broad (ab)use of loans issued with stock as collateral, one month ago Goldman said that "users of financial leverage in equities have shifted from individuals to major shareholders in the form of Stock Pledged Loans (SPL)" this time around with "the risks revolving around SPLs being the major concerns in this market downturn."

The bank also estimated that roughly 1 trillion in stock-pledged loans currently face a margin call risk, with the threat naturally rising the lower stock prices drop.