Credit Squeeze Emerges in China as Money Market Rate Soars

(Beijing) — Rising borrowing costs in China are leading analysts to believe that the central bank is quietly increasing interbank interest rates to discourage debt-fueled financial investments, a media report said Monday.

The three-month Shibor, or Shanghai interbank offered rate, increased for the 31st straight trading day to 3.0686% on Friday, the longest period of gain since the end of 2010, said the Economic Information Daily, a newspaper run by the official Xinhua News Agency.