China’s cash squeeze worsened on Monday despite the central bank’s repeated attempts to calm financial markets with emergency money injections. The seven-day bond repurchase rate, an important gauge of short-term liquidity, climbed to 8.8 per cent in early trading, up about 60 basis points from its average on Friday, a signal that banks are still hoarding cash . The continued tightening of monetary conditions in the face of the central bank’s liquidity injections raises the spectre of a repeat of the Chinese cash crunch earlier this year that exposed fragility in the world’s second-biggest economy and spooked global investors. Traders and analysts have praised the central bank’s more aggressive response to the current liquidity squeeze, but concerns are mounting as its actions appear to have been largely ineffectual so far. Late on Friday the People’s Bank of China announced it had conducted Rmb300bn ($49bn) of “short-term liquidity operations” , […]