China Cash Crunch Eases


The People’s Bank of China injected Rmb29bn ($4.8bn) into the financial system via open-market operations on December 24th, providing immediate relief to the money market.


The seven-day bond repurchase rate, fell 344 basis points to 5.4 percent, the steepest decline in more than two years.

The turmoil in China's money market last week was sparked by a scramble for funds by banks and other borrowers as they neared the end of the year, when they typically need extra cash to meet regulatory requirements and funding demands from companies.

China Cash Crunch Eases


anna@tradingeconomics.com
12/24/2013 11:09:17 AM