China Money Market Tightness Resurfaces as Borrowing Costs Rise, Stoking Worries of Another Cash Crunch
• China's money market shows signs of tightness towards month-end as borrowing costs rise • Traders grow cautious about demand and remain concerned after October's liquidity squeeze • Central bank injected funds to calm market, but rates for key 7-day repos hit highest since October 31 • Borrowing costs are especially high for non-banks, sparking worries of another cash crunch • Authorities asked some lenders to cap interest rates on interbank debt amid rising yields and funding strains