China's benchmark short-term money market rate spiked 194 basis points on Thursday, heading for its biggest single-day rise in history, hit by cash calls for the payment to meet the official increase in bank reserve requirement ratios (RRR) and the coming Lunar New Year.

The weighted average seven-day government bond repurchase rate CN7DRP=CFXS, the main barometer of short-term liquidity supply, rose to 6.0218 percent by 0226 GMT, up from 4.0808 percent at the close on Wednesday.

The PBOC announced an RRR hike for all banks last Friday, which took effect on Thursday and would drain an estimated 360 billion yuan ($55 billion) from the market.

The market is also short of money in the run-up to the Lunar New Year, which falls in early February this year and marks a peak in annual consumer spending. ($1=6.6 Yuan)