The easing of China’s liquidity crunch is driving interest in short-term debt, as investors move to take advantage of an expected fall in yields and more active trading.
During last week, trading in short- and medium-term notes MTN started to rise, according to a report released by China Chengxin International, a domestic rating agency.
Yields for short- and medium-term notes moved up sharply during the liquidity crunch that started in early June, which means there is more room for a fall in yields of short- and medium-term notes, the China Chengxin report notes. Last week, as the central bank started open-market operations, the yield of one-year...
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