Rates for negotiable certificates of....>

CHINA PRESS: Rates for negotiable certificates of deposit (NCDs) have surged to

a record high this week, the China Securities Journal reported Wednesday. Banks

have been under pressure from year-end liquidity assessments, and a large amount

of NCDs, used in the interbank market, are maturing. On Tuesday, the range of

rates for one-month NCDs issued by AAA-ranked joint-stock banks rose to a

historic high to 5.2% to 5.5%; for three-month NCDs,  the rate range was 5% to

5.3%. A total of CNY2.2 trillion worth of NCDs mature in December, which means

banks need to roll over the instruments to meet liquidity coverage ratio

requirements. The unexpectedly fast increase of NCD rates began in the middle of

September even though regulators had discouraged the rapid expansion of

interbank transactions. (China Securities Journal)