In March 2015, both the short-term state-sector and long-term
private-sector interest rates decreased. The overnight Shanghai
Interbank Offer Rate (Shibor) ended March at 3.18%, a lower rate than
the 3.44% seen in February. However, the spread between March’s rate and
the trailing average for March was 108 basis points, slightly higher
than the gap seen in February. Even though the rate dropped
month-over-month, it is still high for March.
The Wenzhou Comprehensive Index ended March at 19.00%. That is 74 basis
points lower than February’s close. The spread between March’s number
and the trailing average was -93 basis points, which is higher than the
rate seen in February.
Both rates are dropping, but the long-term private sector rate is
dropping faster than the short-term state-sector rate. The convergence
trend seems to be continuing.
