China's Credit Crunch Signals How Serious Beijing Is About Reform

A Chinese flag flies outside the People's Bank of China headquarters in Beijing Photograph by Tomohiro Ohsumi/Bloomberg

So what to make of China’s June credit crunch, the worst in at least a decade, which saw interbank lending rates reach a new high? On June 20, the overnight repurchase rate set a record at 13.91 percent, before the People’s Bank of China, China’s central bank, injected funds, driving rates into their its biggest fall since 2007.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.