China Money Rate Jumps Most in Seven Days on Cash Crunch Concern
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China’s benchmark money-market rate jumped the most in seven days and the cost of one-year swaps climbed to a record on concern the central bank’s expansion of reserve requirements will worsen a cash crunch.
The seven-day repurchase rate, which measures interbank funding availability, has surged 89 basis points this week after Standard Chartered Plc and Bank of America Merrill Lynch said the central bank issued a notice on Aug. 26 including margin deposits in the requirements. Guotai Junan Securities Co, the nation’s biggest brokerage by revenue, yesterday said banks will face “cash depletion” following the “bigger-than-expected” tightening measure.