China Money Market Rate Jumps

“Banks are still hoarding cash and are reluctant to lend,” Frances Cheung, a Hong Kong-based senior strategist at Credit Agricole SA, was quoted saying “The Agricultural Bank’s case shows the central bank still prefers relaxing credit selectively to small and medium-sized enterprises.”

The seven-day repurchase rate, a measure of interbank funding availability, had climbed 33 basis points to 3.30% by late afternoon in Shanghai, according to the National Interbank Funding Center’s weighted average compilation. That is the largest increase since Feb. 23. Also, the one-year swap contract had fallen by 0.03% to 3.17%.