Skip to content
Subscriber Only

China Wealth Products to Add Interbank Rate Pressure, Fitch Says

China’s interbank rates, which rose to a record yesterday, will be under upward pressure as more than 1.5 trillion yuan ($245 billion) of wealth management products mature this month, according to Fitch Ratings.

Mid-tier banks, with an average of 20 percent to 30 percent of their deposits in such products, face the most difficulty as tight liquidity constrains their ability to meet repayment obligations, Fitch said in an e-mailed statement today. Issuance of new products and borrowing from the interbank market are among the most common sources of repayment for maturing products, according to the ratings company.