China's central bank injects liquidity into market

BEIJING -- China's central bank on Monday continued to pump cash into the banking system via reverse repos to maintain liquidity.

The People's Bank of China injected 40 billion yuan (about $5.86 billion) into the market through 14-day reverse repos at an interest rate of 2.35 percent, according to a statement on its website.

The move was intended to maintain stable liquidity in the banking system at the end of the third quarter, 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.

China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.