12:34pm: China's one-week cash rate has dropped to its lowest since before last week's sharp credit squeeze, with banks having little trouble securing funds to meet their end-of-quarter requirements. The improvement in short-term funding conditions propped up stocks, which have trailed its Asian peers so far this week, weighed down by concerns that even after the crunch blows over funding conditions would remain tougher than before. The CSI300 index of the largest Shanghai and Shenzhen stocks is up 1.6 per cent, while the Shanghai Composite has risen 0.7 per cent. Both indices are still down sharply since the middle of last week. The central bank allowed short-term borrowing costs...
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