China banks pay most for state funds in 4 months before IPOs

SHANGHAI: Chinese lenders’ cost of borrowing from the central bank rose to the highest since July as they competed for cash before a resumption in new share sales next week.

The People’s Bank of China issued 50 billion yuan (US$7.8bil) of three-month treasury deposits at an interest rate of 3.20%, according to a statement on the authority's website. As much as 1 trillion yuan will be tied up because of 10 initial public offerings in the Nov. 30-Dec. 2 period, according to a Bloomberg survey.