SHANGHAI, May 24: China’s money rates fell slightly on Friday on improving market liquidity, but traders still expect money rates to remain relatively high in the run-up to the month-end reporting period. The weighted average of the benchmark seven-day repo fell 7 basis points to 4.15 percent around midday, down from 4.22 percent on Thursday, while the shortest overnight rate slumped 20 basis points to 3.51 percent from 3.71 percent. The 14-day rate dived 51 basis points to 4.25 percent from Thursday’s 4.76 percent. ‘Fund conditions are much better than before, but the money market will still need to wait for rates to fall back as the worries of month-end still linger,’ said a dealer at a Chinese bank in Shanghai, referring to demand for funds at the end of the month. Dealers said they expected the key seven-day money rate could return to around 3 percent at the beginning of June. (AGENCIES) ^^^^^
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