- China Contagion Spills Over To Hong Kong Banks As HIBOR Explodes To Record High, Stocks Tumble
by Tyler Durden, www.zerohedge.com
Chinese stocks are trading at the lows of the day afterOvernight 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).
Something just snapped…
Evidently the pressure between On- and Off-shore Yuan was too much for banks to bear…
Smashing Hang Seng China Enterprise Index down 5% to its lowest since October 2011