It's reported that rebar futures in Shanghai rose for a second day on decrease of money market rates, indicating the cost of funding is dropping.
Rebar for delivery in May on the Shanghai Futures Exchange (SHFE) hit RMB3, 601/ton or rose by 0.4% from RMB3, 599/ton at 10:07 AM local time.
According to a trader at a primary dealer that the People's Bank of China added RMB 13 billion today by using seven-day repurchase rate, a gauge of short-term liquidity in China that has fallen 15 points to 4.85%.
It is said that investors feared a liquidity squeeze but the central bank seems to be showing no change on tighter policy.