Chinese companies searching for cheap cash have been turning to Taiwan’s banks, sending borrowing costs in the island surging to their highest in three years, the Wall Street Journal reported Thursday. The move underlines a scramble for funding in China due to a clampdown on risky lending. With their higher lending costs, Taiwan banks are vulnerable to foreign rivals that can offer cheaper debt, the report said. A closely watched cost of funding, the gap between the three-month Taifx, which measures the price of US dollars in Taiwan, and the London interbank offered rate has risen to 1.3 percentage points, its highest since 2011 and compares with about 0.7 percentage point in December.
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