China's overnight money-market rate climbed to a seven-month high on speculation that cash shortages will worsen as banks hoard money to meet quarter-end capital requirements and demand for holiday withdrawals.

The People's Bank of China will be gauging demand for 14- and 28-day reverse-repurchase contracts this week, according to a trader required to bid at the auctions.

The central bank used money- market operations to inject a net 101 billion yuan ($16 billion) of capital last week to ease the cash crunch.

China's financial markets will close starting on Oct 1 for the week-long National Day and Mid-Autumn Festival.