Short-term borrowing costs in China climbed to their highest level in two years on Thursday as comments from Xi Jinping fanned investor expectations that a “regulatory windstorm” is part of a broader crackdown on the financial sector.
On Thursday the Chinese president described finance as the “core of a modern economy”, according to Xinhua, the state news agency. He added: “Accurate judgment of potential financial risks serves as a precondition for maintaining financial security.”
The Shanghai interbank overnight rate, or Shibor, rose to 2.792 per cent — its highest since April 3, 2015 when the country was in the grip of a stock market bubble. The cost of borrowing money for three months was at 4.39 per cent, compared with a market rate of 2.8 per cent, six months ago.