China Money Rates Rise as Pickup in PMI Offsets Fewer PBOC Repos

China’s money-market rates increased as manufacturing data suggesting the economy is improving spurred speculation the central bank will curb cash injections.

A preliminary Purchasing Managers’ Index by HSBC Holdings Plc and Markit Economics rose to 49.7 this month, higher than the median estimate of 48.3 in a Bloomberg News survey and a final 48.1 in April. The People’s Bank of China’s open-market operations added a net 120 billion yuan ($19.2 billion) to the financial system this week, the most in four months. It sold 30 billion yuan of 28-day repurchase agreements today at a yield of 4 percent, while 85 billion yuan of the contracts matured.