China's central bank adds liquidity via reverse repos

BEIJING, July 5 (Xinhua) -- China's central bank on Tuesday conducted 3 billion yuan (about 447.85 million U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The interest rate for the seven-day reverse repos was set at 2.1 percent, according to the People's Bank of China.

The move aims to keep stable liquidity in the banking system, the central bank said.

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.

Reading:

Xinhua Headlines: A decade of transformation turns China's financial market into larger global presence

【Financial Str. Release】Economic Watch: ETF trading under mainland-Hong Kong stock connect kicks off

Output of China's major shale gas field hits record high in H1

China's car purchase tax cut benefits over 1 mln cars in one month

Domestic films contribute 85 pct of China box office total in H1