China's central bank stabilises money market

China’s one-week repo rate climbed to 9.8% during the morning session on Wednesday, despite the central bank’s intervention to ease the interbank credit crunch.

The People’s Bank of China PBoC indicated in a statement Tuesday night that it had been providing liquidity support to some financial institutions during the past few days, and said it would take similar moves to relieve temporary liquidity shortages in future to support banks that have a healthy balance sheet and lend to promising projects or industries.

It is the first time that the PBoC has officially responded to the recent credit crisis within the Chinese banking industry, though it did...