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SHANGHAI, Dec 25 (Reuters) - China's benchmark money market rate, the seven-day bond repurchase rate, opened at 5.71 percent on Wednesday, down from Tuesday's close of 6.35 percent.
In recent days, opening trades for the seven-day repo have been considerably lower than both the previous day's close and subsequent trades on the same day, raising suspicions among traders that the central bank has attempted to guide trading.
The opening trade also came after the People's Bank of China injected 29 billion yuan through reverse repos in open market operations on Tuesday.
Interest rates China's interbank market have spiked to their highest level since June in recent days due in part to seasonal factors that increase banks' demand for cash near the end of each quarter. (Reporting by Lu Jianxin and Kazunori Takada)