China's central bank skips open market operations Wednesday

BEIJING - China's central bank skipped open market operations via reverse repos Wednesday, citing sufficient liquidity in the banking system.

The banking system reports a reasonable and sufficient level of liquidity at present, the People's Bank of China said in an online statement.

No reverse repos matured Wednesday.

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. In this way, commercial banks can raise short-term capital. It is the equivalent of a short-term loan with the securities serving as collateral.

China vowed to keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.