SHANGHAI, June 20 (Reuters) - China's money rates rose this week on rising money demand from cyclical month-end factors and investors trying to raise short-term funds to invest in initial public offerings (IPOs).         Money rates in China typically gain toward the end of the month, and in particular, at the end of the first half, when banks and corporates stock up on cash to burnish their balance sheets.     In 2013, this cash demand saw rates hit the stratosphere as the central bank held back on liquidity, which economist saw as a swipe at high-risk shadow banking, but this time around few expect a recurrence of the cash crunch.  
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         The weighted average of the seven-day bond repurchase agreement  
  CN7DRP=CFXS
   stood at 3.45 percent in the early afternoon on Friday, up 40 basis points from last week's close.      Another actively traded tenor, the 14-day repo  
  CN14DRP=CFXS
  , spiked 136 basis points this week to trade at 4.60 percent on Friday. The overnight repo rate  
  CN1DRP=CFXS
   rose a moderate 16 basis points to 2.78 percent, largely because that tenor does not allow clients to retain funds across the month-end.            "The rise of money rates, particularly the spike in the 14-day repo rate this week, has been mainly caused by cyclical demand for the 14-day repo. As expected, the end of the quarter has raised money demand, thereby pumping up the price of those benchmark instruments," said a trader from a city commercial bank in Shanghai.      The growing cash demand for investment in IPOs is also contributing to this trend, the trader said.     Earlier this week, the Shanghai Stock Exchange saw intense rises in the rates of short-term pledged bond repurchase agreements as investors put up bonds as collateral to raise short-term cash, signifying enduring speculative interest in new listings even while wider indexes decline. 
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       However, the rise in the pledged repo rates had no discernable impact on the wider money market.     This week, the People's Bank of China injected a net 15 billion yuan ($2.42 billion) into the interbank market during open market operations, a relatively small injection compared with the past several weeks.      Traders agree that starting from May, the PBOC has started to drain money from the market gradually, but there is no need for concern about capital liquidity.       SHORT TERM RATES:   Instrument         RIC                Rate*   Change                                                (weekly,                                                bps)**  1-day repo         CN1DRP=CFXS          2.78          16.75  7-day repo         CN7DRP=CFXS          3.45          40.26  14-day repo        CN14DRP=CFXS         4.60         136.64  7-day SHIBOR       SHICNYSWD=           3.40           36.2   *The volume-weighted average price (vwap) at midday Friday ** Compared to the Vwap at market close the previous Friday   KEY INTEREST RATE SWAPS:  Instrument              RIC           Rate    Spread(bps)  2 yr IRS based on 1     CNABAD2YF=    2.9704             -3  year benchmark *                                5 yr 7-day repo swap    CNYQB7R5Y=    3.8500             85  1 yr 7-day repo swap    CNYQB7R1Y=    3.4400             44   *This spread can be seen as a proxy for forward-looking market expectations of an interest rate cut or rise.  
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    GOVERNMENT BOND FUTURES  Instrument     RIC       Price(Yua  Change (weekly,                           n)         bps)**  Jun 2014 5yr   CTFM4         93.02            35.19  Sep 2014 5yr   CTFU4         94.54             9.28  Dec 2014 5yr   CTFZ4         94.93             5.62                 >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>          MARKET DRIVERS     - China's money rates slip, offer no signs of monetary policy change [ID: nL4N0OU0LH]     - As cash crunch anniversary looms, traders guess at c.bank policy direction  
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       - China money dealers see stability, not easing going forward  
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       - Muted impact of capital inflows a step towards liberalising deposits  
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       - Tax man's attack on shadow banking startles markets  
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       - China eases Jan credit squeeze with cash, surprising transparency  
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       - Market braces for bouts of tight liquidity in 2014  
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       - Beijing eases corporate debt rules to offset crackdown  
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       - China corporate financing squeezed as reform plans spark rate spike  
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            DATA POINTS     - Fiscal deposits drive interbank liquidity trends GRAPHIC: 
  http://link.reuters.com/pem75t
      - China hot money tracker: Hot money inflows slow to a trickle in Dec 2013 GRAPHIC: 
  http://link.reuters.com/saz74t
      - Maturing central bank bills and repos upcoming GRAPHIC: 
  http://r.reuters.com/vyr95t
      - Chinese government bond curve rises on rate reform expectations GRAPHIC: 
  http://link.reuters.com/jyr95t
      - China's interest-rate swap curve rises, flattens on liquidity fears GRAPHIC: 
  http://link.reuters.com/ryr95t
      - China corp bond spreads widen on risk aversion GRAPHIC: 
  http://link.reuters.com/bas95t
             >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>    ($1 = 6.2090 Chinese Yuan Renminbi)   (Reporting by the Shanghai Newsroom; Editing by Jacqueline Wong)  ((jianxin.lu@thomsonreuters.com)(pete.sweeney@thomsonreuters.co m))   ((China FX and money market guide:  
  CNY/1
     China debt market guide:  
  CN/DEBT
    SHIBOR rates:  
  SHIBOR
    Reports on central bank open market operations:  
  CN/MMT
    New Chinese debt issues: 
  CN/DBT
    Prices for central bank bills, treasury bonds and sovereign bonds:  
  CN/CONT203
    Overview of China financial market data:  
  CN/HIGHLIGHT
  ))  Keywords: MARKETS CHINA BONDS/