China benchmark rate average hits 7.48 percent, highest since June crunch

SHANGHAI Thu Dec 19, 2013 9:46pm EST

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SHANGHAI Dec 20 (Reuters) - The volume-weighted average price of China's benchmark seven-day bond repurchase rate , considered the most representative indicator of liquidity conditions, hit 7.48 percent on Friday, its highest level since June 24.

Money markets began tightening on Wednesday and spiked on Thursday when the central bank abstained from injecting cash to ease shortages, similar to a massive credit squeeze in China that roiled global markets in June.

The People's Bank of China (PBOC) said on Thursday it had injected an unspecified amount of cash into the market and also extended trading hours by 30 minutes.

However, the money market remained anxious on Friday, traders said, with rumours swirling about loan defaults by two commercial banks. (Reporting by Pete Sweeney; Editing by Paul Tait)

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