China’s money rates were expected to increase into the end of the year as banks scrambled to meet regulatory requirements, though not to the level to which they have surged over the last few days. We are not yet at the near-panic of June but the current cash crunch is worrisome, and another indication of the mess in the Chinese banking system. The People’s Bank of China clearly does not want a repeat of June, however there are still seven days until the end of the year and then only a month until the Chinese New Year holiday and all its debt-settling, wage payments and cash withdrawals so rates could stay elevated for some time.
Source: Sinocism Newsletter
Source: Sinocism Newsletter
