China's central bank injects 900b into market

China's central bank pumped 900 billion yuan (US$129 billion) into the financial system via reverse repos on Monday.

The People's Bank of China injected 700 billion yuan into the market through seven-day reverse repos at an interest rate of 2.4 percent, and conducted 200 billion yuan of 14-day reverse repos at an interest rate of 2.55 percent.

Meanwhile, 900 billion yuan of reverse repos matured Monday, resulting in zero liquidity injection into the market.

The move aims to offset the impact of reverse repos maturing and to keep liquidity in the banking system at a reasonably sufficient level, according to a statement on the website of the central bank.

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