2016-12-15bloomberg.com

Chinese shadow-banking activity registered a surprise jump in November, throwing into sharp relief how policy makers are struggling to make good on their vow to rein in the runaway loan growth that threatens the stability of the financial sector....

shadow credit... rose sharply to 479 billion yuan ($69 billion), after having dropped to 55 billion yuan in October.

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The surprise rebound may be a reaction to expectations for continuing yuan weakness as companies look to increase their local-currency liabilities at the expense of dollar-denominated obligations.

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Efforts to curtail shadow lending may exacerbate this month's liquidity squeeze, as the yield on 10-year government bonds shoots up to 3.24 percent from 2.74 percent at the end of October -- their highest level in more than a year.



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