China Contagion Spills Over To Hong Kong Banks As HIBOR Explodes To Record High, Stocks Tumble

China Contagion Spills Over To Hong Kong Banks As HIBOR Explodes To Record High, Stocks Tumble:

Chinese stocks are trading at the lows of the day after Overnight HIBOR rates (Hong Kong’s interbank borrowing rate) exploded a stunning 939bps to a record high 13.4%. It is clear that banks are utterly desperate for liquidity and/or are extremely concerned about one another’s counterparty risk. This has dragged HSCEI down 5% (to its lowest since Oct 2011).

 

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