China boosts liquidity with open market operations

BEIJING - China's central bank on Thursday injected a liquidity of 70 billion yuan ($10.2 billion) through open market operations. The People's Bank of China (PBOC), the central bank, said in a statement that it conducted the operation via seven-day reverse repos with an interest rate of 2.55 percent and 14-day reverse repos at 2.7 percent.

Previous reverse repos worth 100 billion yuan matured Thursday, meaning that the net market liquidity dropped by 30 billion yuan.

The PBOC will make policies more forward-looking, flexible and effective, maintain proper control over the floodgate of money supply and keep liquidity at a reasonable and abundant level, according to a quarterly report released earlier this month.

China's prudent monetary policy will be "kept neutral and be neither too tight nor too loose," said the report.