China's money market rates spiked on Wednesday to a four-month high, a day after the country's central bank injected funds into the market to ease worries that it was planning to significantly tighten credit conditions.
The seven-day repo rate, viewed as a key gauge of confidence to lend in the interbank markets, rose to around 5.59 percent – up about 64 basis points from the previous day.
Analysts said that the jump in rates was seasonal in nature and at this stage were not too concerned about a repeat of events in June when a surge in money market rates fueled fears of a credit crunch in the world's number two economy.
(Read more: China money market rates spike – don't panic yet)
They added that liquidity infused into the market this week had not been large enough to push overnight lending rates significantly lower. The People's Bank of China (PBOC) injected 13 billion yuan ($2.13 billion) into money markets on Tuesday via an open market operation.