China Press: Tight interbank liquidity market is expected to continue until February

The China Securities Journal carries a story today, predicting that tight interbank liquidity condition is expected to persist until early Feb in China.

Key Points via MNI:

Tight liquidity in the interbank market is expected to continue until early February

Liquidity is forecast to get even tighter in the next one to two weeks - citing end-of-year regulatory requirements

A structural imbalance in liquidity is the biggest problem at the moment

Commercial banks lending to institutions with higher credit ratings which is making it more difficult and more costly for non-bank financial institutions such as brokerages to get needed funding