China's central bank continues to inject liquidity

BEIJING - China's central bank continued to inject funds into the financial system via open market operations on Monday.

The People's Bank of China (PBOC) conducted 80 billion yuan ($12.7 billion) of seven-day reverse repos, according to a PBOC statement.

The move is offset by the same amount of maturing reverse repos, which means market liquidity remains intact.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The interest rate for the reverse repos remains unchanged at 2.55 percent.

The PBOC has recently managed market liquidity through targeted moves rather than across-the-board adjustments of interest rates.

The central bank has vowed to keep monetary policy prudent and neutral, maintain a stable, reasonable level of liquidity, and oversee moderate growth of financial credit and social financing.