China RRR hike to drive offshore financing.

The article reports on the possible effect of an increase in the reserve ratio requirement (RRR) for banks by the People's Bank of China (PBoC) on April 17, 2011 on offshore funding among Chinese corporations and loan pricing. A senior loans banker predicted an increase in incidence of Chinese corporates borrowing offshore. The RRR for large banks and smaller banks reached a record high of 20.5% and 18.5%, respectively. Also noted is the possible implementation of a 50-basis point hike in RRR in the coming months.