The People's Bank of China, China's central bank, conducted 30 billion yuan worth of 7-day revere repos at annualized yield of 2.25 percent in Thursday's open market operation.
Given that 30 billion yuan worth of reverse repos are due this week, together with the 10 billion yuan of 7-day reverse repos offered on Tuesday, the central bank injected a net 10 billion yuan into the financial system via this week's open market operations.
Due to investors' rising demand for cash at the year-end and next week's IPO subscription, market liquidity might turn tight in the short term, said traders, adding that the central bank was expected to adopt multiple policy instruments in a bid to keep liquidity environment stable in the future.
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