tuesday after double pomo, page-22

Interestn move in ST money market rates in China if interested

http://www.smh.com.au/business/markets/china-shares-slump-as-cash-dries-up-20101130-18ev7.html

China shares slump as cash dries up November 30, 2010 - 2:57PM
.China's key stock index fell 3.1 per cent by midday, with a shortfall of cash in the domestic money market creating a liquidity squeeze in the stock market.

China's benchmark short-term money market rate, the weighted average seven-day government bond repurchase rate, jumped over 57 basis points early today to its highest level in more than two years, with traders reporting an acute liquidity squeeze.

The Shanghai Composite Index was at 2778.9, plunging to levels not seen since early September. The index has fallen 7 per cent this month after rising 12 per cent in October.

Analysts said the drying up of cash in the market was prompting speculative retail investors, already on edge about whether the central bank would introduce further tightening measures, to sell heavily weighted financials and commodity issues.