Hong Kong Says Borrowing Cost Surge Driven by Demand for Cash
- Hibor falls 175 basis points after surging previous day
- Rising equities markets may be easing financial stress
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Hong Kong’s overnight cost of borrowing fell on Wednesday, easing a cash crunch.
The overnight interbank rate, known as Hibor, tumbled 175 basis points to 2.4%, after surging by the most in at least 17 years on Tuesday. The one-month cost dropped 13 basis points to 3.37%.