As for the Chinese economy efforts to reduce the inflation risks during the first half of the New Year, China's banks will increase the interest rates to the highest level in more than two year during the first three months, as Chinese policy makers are working to curb supplies of cash to fight inflation.

The seven-day repurchase rate (which measures interbank funding availability) may be at average 2.9 percent in the first quarter, compared with 2.75 percent in the previous three months, also the seven-day repo rate has doubled in the past year to 3.26 percent, as the one-week U.S. dollar Libor remained little changed at around 0.25 percent.

Moreover, China economy decided to curb risk-taking by banks after they have recorded a $1.4 trillion in new loans during 2009, where the government aims to control the propagation of asset bubbles, which remains a real estate market. New bank loans fell to 564 billion Yuan in November from 596 billion Yuan in September.