Money Market rates have shot up in China.

The Fed may have declared its intention of going slow on its quantitative easing which sparked a wave of liquidity around the world, but China seems to be short of cash. Indeed, money market rates have shot up in China. As a result of which there is the possibility of a severe credit crunch for the dragon nation's banking system. Earlier, China's banking system had come under pressure because of the significant rise in credit. Most of this had found its way into the property market raising concerns of a bubble forming there. As a result of this, the Chinese government had taken steps to contain credit growth. But because of this, the interbank rates rose. Obviously, the government's efforts to reduce credit growth do not seem to have worked much. It remains to be seen what it chooses to do next.