China’s Runaway Train Is Running Out of Track
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(Corrects reference to PBOC in third paragraph.)
Jan. 3 (Bloomberg) -- A financial drama is unfolding inChina as the new year begins. Last week, for the second time insix months, interest rates in the critical interbank lendingmarket spiked above 10 percent, prompting fears of a liquiditycrisis that would trigger mass defaults and cripple the world’ssecond-largest economy.