The People's Bank of China (PBOC), the central bank of China, injected 120 billion yuan (about 17.3 billion US dollars) of funds into the market on Monday through reverse repos to maintain liquidity.
The PBOC conducted the seven-day reverse repos at an interest rate of 2.55 per cent, which was unchanged from the rate for the previous 30 billion-yuan operation on Friday, it said in a statement.
The move is aimed at offsetting the impact of such factors as tax payments and government bond issuance and keeping liquidity in the banking system at a reasonable and ample level, said the release.
A reverse repo is a process by which the central bank bids and buys securities from commercial banks with an agreement to sell them back in the future, reports Xinhua.
The country will continue to implement a prudent and neutral monetary policy and properly deal with the relationship between stabilising growth, deleveraging and strengthening regulatory control.