Hong Kong Yuan Savings Rate Doubles on Stock Link: China Credit
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Yuan demand in Hong Kong is rising so fast before a stock link with Shanghai that bank deposit rates for the currency have more than doubled in six months.
The three-month interbank rate jumped to an intraday high of 3.99 percent yesterday from 1.6 percent on May 9, according to data compiled by Bloomberg. HSBC Holdings Plc. offers as much as 6.5 percent interest on one-week yuan deposits, while Dah Sing Banking Group Ltd. pays up to 4.8 percent to savers who convert Hong Kong dollars into one-month yuan deposits.