China's overnight repo nearly doubles on tighter cash conditions

SHANGHAI, Jan 26 (Reuters) - China's overnight repo traded on the Shanghai stock exchange surged to a high of 5.4% on Tuesday afternoon, up 242.5 basis points from the previous close of 2.975%.

Short-term borrowing costs in China jumped to pre-COVID 19 levels, pressured by the combination of the central bank's extended net drain of cash from the financial system and higher holiday demand.