China's money rates rose slightly on Wednesday, but dealers said that liquidity remained adequate thanks to the central bank's open market operations on Tuesday. Dealers said that most Chinese financial institutions have already allocated enough funds to meet year-end cash demand, so the money rates are likely to move within a tight range until year-end.

"Liquidity is abundant for now, so we expect to sail through the year-end," said a dealer at a Chinese bank in Shanghai. The benchmark weighted-average seven-day bond repurchase rate rose 13.05 basis points to 3.8489 percent from 3.7184 percent at the close on Tuesday. The 14-day repo rate rose to 4.4730 percent from 4.3801 percent, and the one-day repo rate advanced to 2.3021 percent from 2.2946 percent. On Tuesday, the People's Bank of China injected 110 billion yuan ($17.65 billion) into the money markets through 28-day reverse bond repurchase agreements, supporting market funds.

Copyright Reuters, 2012