China's central bank injects liquidity into market
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China's central bank injected liquidity into the money market through reverse repos Wednesday.

The People's Bank of China conducted 60 billion yuan (about 9 billion U.S. dollars) of seven-day reverse repos at an interest rate of 2.55 percent.

As 20 billion yuan of reverse repos are due Wednesday, the central bank has effectively pumped 40 billion yuan into the market.

A reverse repo is a process by which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

The operation is aimed at maintaining reasonable and sufficient liquidity in the banking system.

Wednesday's interbank market showed the overnight Shanghai Interbank Offered Rate (Shibor), which measures the borrowing cost on China's interbank market, dropped 5.1 basis points to 2.654 percent.

The seven-day Shibor increased 0.5 basis points to 2.75 percent, while the two-week rate was up 2.5 basis points to 2.887 percent.

Author： 　　　Source：xinhua　　　 Editor：Yang Fan