Chinese liquidity squeeze continues to ease.

The Chinese cash crunch continued to soften today, with the benchmark seven-day repurchase agreement rate falling to 5.43% from 6.16% on Friday, although it's still considerably higher than the average of 3.3% this year before the liquidity squeeze started in late May. The situation was expected to ease with the start of Q3, as the end of Q2 saw banks rush to raise money to meet capital requirements.