China's banks in urgent need of short-term funds are paying high overnight rates

<p>Banks in China have accelerated their borrowing of short-term funds, with some, reports Bloomberg, having to pay a 50% overnight rate last week.</p><p>The Bloomberg report is gated, but in brief:</p><ul><li>fears of a cash crunch still loom</li><li>authorities sought to calm traders after a recent liquidity squeeze</li><li>onshore lenders doubled their issuance of negotiable certificates of deposit (these are a form of debt with maturities from one to 12 months) this week to more than 1 trillion yuan ($137 billion), the largest weekly issuance of such debt on record</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.