China money rates rise, market awaits central bank's reverse repo

SHANGHAI: China's money rates rose sharply on Wednesday due to tight conditions as the central bank kept draining funds from the market after a week-long holiday.

But conditions are set to ease going forward as the People's Bank of China has signalled it will likely resume injecting liquidity into the money market during Thursday's open market operations.

The benchmark weighted-average seven-day bond repurchase rate jumped 43 basis points to 4.2542 percent from 3.8247 percent at the close on Tuesday.

The 14-day repo rate rose to 4.84 percent from 4.28 percent, and the one-day repo rate advanced to 3.93 percent from 3.79 percent.