BEIJING, Sept. 5 (Xinhua) -- Chinese central bank's open market operations led to net liquidity withdrawal from the banking system last week.
The People's Bank of China injected 280 billion yuan (40.94 billion U.S. dollars) into the market through reverse repos last week, while 750 billion yuan of reverse repos matured, resulting in 470 billion yuan of net liquidity withdrawal, the China Securities Journal reported, citing data from financial information provider Wind.
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.
China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report. Enditem
A single purchase
