China's central bank injects liquidity through reverse repos.
China's central bank conducted 2 billion yuan (about US$281.38 million) of seven-day reverse repos at an interest rate of 1.8 percent on Wednesday. The move aims to keep liquidity reasonable and ample in the banking system, Xinhua quoted the People's Bank of China as saying in a statement. 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.