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China Confidential - Premium Investment Insight
02 August 2012

Funding costs in the offshore renminbi (CNH) market have continued to climb higher even after the Hong Kong Monetary Authority (HKMA) announced earlier this week that CNH deposits in the city had risen in June. This is the latest indication yet that funding costs are unlikely to ease unless we see a substantial improvement in liquidity conditions across the CNH financial markets over the next few weeks.



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