Oct. 10 (Bloomberg) -- China’s benchmark money-market rate dropped the most in more than a month as demand for funds fell after Sinohydro Group Ltd. completed the nation’s biggest initial public offering so far this year.
The country’s largest builder of hydroelectric dams raised 13.5 billion yuan ($2.1 billion) from its equity offering, according to a company statement on Sept. 29. China’s financial markets were shut last week for the National Day holidays.
“The seven-day repurchase rate is expected to come down in the coming days as it was held high by IPO subscriptions two weeks ago,” said Matthew Huang, a senior strategist at Macquarie Group Ltd. in Singapore.
The seven-day repo rate, a gauge of funding availability in the financial system, decreased 37 basis points, or 0.37 percentage point, to 4.439 percent as of 4:27 p.m. in Shanghai, according to a weighted average compiled by the National Interbank Funding Center. That was the biggest decline since Sept. 6 and the lowest level since Sept. 26.
The one-year swap rate, the fixed cost paid to receive the floating seven-day repurchase rate, fell four basis points to 3.6825 percent in Shanghai, according to data compiled by Bloomberg. The measure slid 72 basis points last month, the most since November 2008.
--Editors: Anil Varma, Ven Ram
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