Fears over Shibor manipulation slow China IRS market
Market players express doubts over accuracy of quotation system and instead prefer to use repo rates
Concerns over the accuracy of the Shanghai interbank offered rate (Shibor) are deterring dealers from trading interest rate swaps based off the benchmark and instead they say repo figures are a more reliable measure of actual market costs.
The Shibor lending rate was introduced in 2007 with the aim of establishing a market-based benchmark and is derived in a similar manner to the London interbank offered rate. Like Libor, it is calculated from rates quoted by 18 banks eliminating the four
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