Monday , March 27 2017

Banking

China’s shadow banks hit by money market squeeze

BEIJING - JULY 22: (CHINA OUT) A clerk counts stacks of Chinese yuan at a bank on July 22, 2005 in Beijing, China. The People's Bank of China, the central bank, announced on July 21 to scrap the yuan's decade-old peg to the U.S. dollar, and in stead phase in a flexible mechanism of the yuan exchange rates. The exchange rate of yuan vs U.S. dollar was announced at 8.11 vs 1 on July 22. (Photo by China Photos/Getty Images)

  Bloomberg 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 ...

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