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7 Jun 2023

China traders are leveraging up the most on record fluch cash

A gauge of leveraged activity in China’s money market has notched another record as onshore financial institutions take advantage of ample liquidity to boost borrowing.

Turnover of so-called overnight pledged repo trades surged to an all-time high 7.9 trillion yuan ($1.1 billion) on Tuesday.

An increase in volume may be indicative of banks using cheap funding costs to buy bonds, even if the transactions also include the day-to-day financing needs of firms in the market.

Source: Bloomberg

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