Back from the lunar new year celebrations - having missed out on all the excitement in global turmoiling markets - the Chinese markets are re-open for business. However, despite the world of status-quo-apologists telling us that China's liquidity crisis was a storm in a teacup and would blow over once the 'normal' new year needs were met (and CEQ#1 was bailed out), it turns out that liquidity needs remain high... very high. Repo rates across the spectrum are higher with immediate overnight liquidity costs up 127bps to 4.27%. Get back to work Mr. PBOC as there's CNY 375 billion of year-end liquidity to be mopped up (tightened out of the system).

Repo markets are on the rise again...

And remember all that liquidity will mature/roll off in a week or so...unless the PBOC folds on its reform mandates...

So that's CNY 375 billion about to be sucked out... no wonder the market's need for liquidity is high.

Charts: Bloomberg