China Bond Markets Roiled by Rumors, Fed Rate Increase

(Beijing) — Several mutual funds in China suffered huge selloffs amid a bond market crash Thursday, and the funds scrambled for money as most banks tightened lending to non-bank financial institutions.

At 4:45 p.m. on Thursday, 15 minutes before the central bank's interbank high-volume payment clearing system closed, several fund management firms were still looking high and low for cash to pay panicked investors who were selling their money market funds.