Short-term rates spike as speculation rises of PBOC tightening bias
SHANGHAI, Jan 26 (Reuters) - China’s blue-chip stock index fell on Tuesday, marking its biggest daily loss since September after touching a 13-year high in the previous session, amid tightening liquidity conditions and Sino-U.S. tensions. At the close, the Shanghai Composite index was down 1.51% to 3,569.43, its biggest daily drop since Dec. 22. The blue-chip CSI300 index tumbled 2.01%, its biggest one-day loss since Sept. 9. The CSI300 financial sector sub-index fell 1.71%, the consumer staples sector lost 1.11%, and the healthcare sub-index dropped 3.04%. Financial firms came under pressure against a backdrop of tightening liquidity conditions. Short-term rates jumped to pre-COVID levels on Tuesday, with some investors speculating that the central bank might adopt a tightening bias in its monetary policy. China-U.S. relations continue to weigh on sentiment. China said on Tuesday it will conduct