China cash squeeze lurks again as US$340bil NCDs come due

BEIJING: China’s money market is bracing for yet another squeeze.

A record 2.3 trillion yuan (US$340bil) of negotiable certificates of deposit (NCDs) - a funding lifeline for medium and smaller banks - are set to mature next month, adding to the stress of an official deleveraging drive that has pressured onshore bonds lower in all but two months of this year.