Reported about 11 hours ago
China continues to experience a cash squeeze, as a recent liquidity boost from the Central Bank proves insufficient to meet rising funds demand. The liquidity crisis has led to increased borrowing costs, with the seven-day repurchase rate hitting its highest level since March 2023. Despite a significant cash injection aimed at offsetting pre-holiday cash demands, funding pressures remain, particularly affecting non-bank financial institutions. Seasonal demands for cash ahead of the Lunar New Year might further complicate the situation.
Source: YAHOO