Rising costs, not PBoC, could slow China’s bank debt binge

SHANGHAI: China may avoid having to pull out the big stick when it comes to reining in a record short-term borrowing spree by its smaller banks.

The increased cost to lenders of issuing so-called negotiable certificates of deposit (NCD) will naturally deflate a market that jumped by 90% in February from a year earlier, according to Ping An Securities Co.