Bank of China Denies Default Allegations!

• Bank denies default allegations! 
  by http://www.china.org.cn/ 
  Amid market concerns over a liquidity crunch, Bank of China, one of China’s “big four” banks, on Thursday evening denied a media report alleging the bank had defaulted earlier in the day.
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  The 21st Century Business Herald on Thursday reported through its official Sina Weibo account that BOC had defaulted on Thursday afternoon, deferring transactions for half an hour due to a fund shortage, citing anonymous sources.
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  In response to the allegation, BOC posted a statement on its official Sina Weibo, saying that it has never had monetary defaults and had timely completed all outbound payments on Thursday.
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  BOC also said that the rumors are “seriously unfounded” and the bank reserves the right to pursue legal action against those who started the rumors out of malicious intent.
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  Recent interest rate increases in China’s inter-bank market have raised market concerns over a liquidity crunch. The Shanghai Interbank Offered Rate (SHIBOR) overnight rate surged 578.40 base points to 13.44 percent on Thursday, and fixing Repo 7-day, another gauge of interbank interest, gained 292.9 base points to 11 percent.
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  However, the central bank issued three-month bank bills worth 2 billion yuan ($324 million) on Tuesday and Thursday, respectively, missing market expectation over large-scale liquidity injection.
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  The State Council, or China’s Cabinet, said at a meeting on Wednesday that the government will maintain a prudent monetary policy with reasonable scale of monetary aggregates.

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