The People's Bank of China, China's central bank, withdrew a net 535 billion yuan from the financial system via open market operation last week.
According to the central bank, it conducted 100 billion yuan worth of 7-, 14- and 28-day reverse repos sales on Friday. Last week, the central bank lent 339 billion yuan to 24 financial institutions via the medium-term lending facility (MLF).
Traders noted that liquidity condition in the financial system was expected to turn stretched in January due to the upcoming Spring Festival holiday and huge amounts of expired MLF.
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