Chinese shares rise as liquidity eases further

|By:, SA News Editor

Chinese shares closed up 0.6% in thin trading as short-term money market rates dropped for a second day in a row after previously rising sharply and hurting stocks.

The seven-day repurchase rate fell 86 bps to 5.58% following an injection of capital from the People's Bank of China, which had refrained from such moves for much of December.

Year-end tax refunds that businesses received from the government and deposited in bank accounts also helped to increase liquidity among banks.

Hong Kong was closed for Christmas.

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