China acts to avert credit crunch.

The People's Bank of China has made an emergency injection of liquidity into the country's financial system after money market rates started to spike again due to lack of action by the PBOC earlier and increasing demand for money because banks need it for year-end regulatory requirements. The seven-day repo rate climbed 72 bps to 7.02% after jumping 153 bps yesterday, helping to drag the Shanghai Composite down almost 1%.