SHANGHAI: China's money rates fell slightly on Wednesday, with dealers reporting weak demand for shorter-term money instruments.
Dealers said they expected the money rates to continue to fall in coming days thanks to ample liquidity in the market.
Market players are preparing for the one-week long Chinese New Year Holiday, starting on Feb. 9.
"Money demand is really weak given that most institutions are not short on funds," said a dealer at a Chinese commercial bank in Shanghai. "Also, it's not hard to borrow money at present."
The benchmark weighted-average seven-day bond repurchase rate fell 11 basis points to 3.00 percent from 3.11 percent at the close on Tuesday.
The 14-day repo rate dipped to 3.01 percent from 3.18 percent, and the one-day repo rate was down to 2.09 percent from 2.12 percent.
The key seven-day rate hovered around 3 percent for most of last month until Dec 20, when the traditional year-end squeeze pushed the rate up to peak at 4.58 percent on the last day of the year. A rate below 3 percent is generally seen as indicating loose conditions.
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