Chinese money market rates decline in 2015

Interest rates in China's money market saw sharp decline in 2015, official data showed.

The weighted average of rates on the pledge-style repo, a short-term financing instrument with securities pledged as collateral, dropped 154 basis points year on year to 1.95 percent in December 2015, while that of interbank borrowing dipped 152 basis points to 1.97 percent, according to a new report from the People's Bank of China, the central bank.

Companies also saw lower bond financing costs. The weighted average of issuing rate on fixed-rate corporate bonds declined 146 basis points from the previous year to 4.06 percent in December 2015 while yields on five-year corporate bonds rated AAA and AA+ also dropped 150 and 172 basis points respectively by year end. Endi