China Shadow Banks Hit by Record Premium for One-Week Cash
- Gap between 7-day repo fixing and average surges to record
- StanChart says de-leveraging to put pressure on corporate debt
PBOC Drained Funds for Sixteen Days
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This week’s squeeze in Chinese money markets is proving especially painful for the country’s shadow banks.
While interbank borrowing rates have climbed across the board, the surge has been unusually steep for non-bank institutions, including securities companies and investment firms. They’re now paying what amounts to a record premium for short-term funds relative to large Chinese banks, according to data compiled by Bloomberg.