SHANGHAI, Jan 26 (Reuters) - China’s overnight repo traded on the Shanghai stock exchange surged to a high of 5.4% on Tuesday afternoon, up 242.5 basis points from the previous close of 2.975%. Short-term borrowing costs in China jumped to pre-COVID 19 levels, pressured by the combination of the central bank’s extended net drain of cash from the financial system and higher holiday demand. (Reporting by Winni Zhou and Andrew Galbraith; Editing by Clarence Fernandez)