China central bank adds liquidity via reverse repos

China's central bank continued to inject funds into the financial system through open market operations Thursday, state news agency (Xinhua) reported.

The People's Bank of China said it has conducted 2 billion yuan (about US$285.85 million) of seven-day reverse repos at an interest rate of 2 percent.

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.