China’s bank funding gets even more twisted with the negotiable CD - WSJ

The Wall Street Journal (WSJ) carries an article on Tuesday, citing that the Chinese banks keep finding new ways from funding, despite several efforts by the Chinese regulators to limit risks.

The latest example: a straightforward type of short-term bond called a negotiable certificate of deposit.                                                                                                         

Key Points:

In part due to funding squeezes elsewhere in the money markets, this has become a key source of funding for midsize banks

Amount outstanding rising to 7.4 trillion yuan ($1.07 trillion) at the end of February (double that of a year earlier)

A fifth of those instruments-1.53 trillion yuan's worth-mature this month