China Overnight Rate Completes Sixth Weekly Gain on IPO Demand
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China’s overnight money-market rate climbed for a sixth week, the longest rising streak in a year, as new share sales and banks’ borrowings to meet quarter-end capital requirements drained cash.
Initial public offerings resumed this week after four months and the biggest impact on the money market will be on June 23, when an estimated 500 billion yuan ($80 billion) will be frozen at lenders, according to Shenyin Wanguo Securities Co. About 100 Chinese firms will sell shares in mainland IPOs by year-end, China Securities Regulatory Commission Chairman Xiao Gang said May 19. Local banks need to hoard deposits to meet requirements set by regulators at the end of every quarter.