The Chinese Interbank Repo Market

Ross Kendall and Jonathan Lees
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Ross Kendall: Reserve Bank of Australia
Jonathan Lees: Reserve Bank of Australia

RBA Bulletin (Print copy discontinued), 2017, 75-86

Abstract: The market for repurchase agreements (repos) is an important source of short-term funding for financial institutions operating in China. This article outlines the key features of Chinese repo markets, focusing on the interbank market, before discussing recent developments and their impact on the bond market. Repo rates have fallen and become less volatile over the past couple of years, encouraging greater risk-taking in financial markets. Policy settings in China have both shaped and responded to these developments.

Keywords: china; repo; repurchase agreement; chinese financial markets; chinese interest rates; china funding markets; china leverage; chinese authorities; repo market; interbank market; money market; bonds; chinese bond market; bond market leverage; bond yields; asset managers; chinese banking system; people’s bank of china; policy banks; pledged; repo rates; dai chi; sealand; liquidity; volatility; carry trade; x-repo; maturity mismatch; refinancing risk (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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