The People's Bank of China or PBOC conducted the seven-day reverse repos at an interest rate of 2.55 percent, which was unchanged from the rate for the previous 30 billion-yuan operation on Friday, it said in a statement.
The move is aimed at offsetting the impact of such factors as tax payments and government bond issuance and keeping liquidity in the banking system at a reasonable and ample level, according to the statement.
A reverse repo is a process by which the central bank bids and buys securities from commercial banks with an agreement to sell them back in the future.
In June this year, the PBOC pumped 60 billion yuan into the market through reverse repos, with 210 billion yuan of contracts maturing, leading to a net withdrawal of 150 billion yuan.
The PBOC said the move was to maintain liquidity "at a reasonable and abundant level."
China will continue to implement a prudent and neutral monetary policy and properly deal with the relationship between stabilizing growth, deleveraging and strengthening regulatory control, according to a statement issued after a Saturday meeting of the financial stability and development committee under the State Council.
In order to support the development of private enterprises and resolve the risk of equity pledge, the securities industry for the first time has injected an investment of 21 billion yuan to establish a parent asset management plan by 11 securities companies. As a guiding fund, each securities company has set up several sub-capita plans to attract capital investment from banks, insurance companies, state-owned enterprises and government platforms so as to form a capital management plan totaling 100 billion yuan.
(Source: ourjiangsu.com)
