(Yicai Global) Jan. 3 -- China's central bank, the People's Bank of China (PBOC), withdrew a net figure of CNY90 billion (USD13.1 billion) in cash from the financial system via an open market operation today, following a CNY70 billion withdrawal yesterday.

The PBOC conducted a seven-day reverse repo of CNY40 billion today, as well as a 14-day reverse repo of CNY20 billion, against CNY150 billion in maturing previous reverse repos.

The seven-day reverse repo bid rate was 2.55 percent, while the 14-day rate was offered at 2.70 percent, unchanged from the previous open market operations.

The central bank also altered the criteria that the country's lenders should meet to enjoy targeted cuts in reserve requirement ratios yesterday, to lower borrowing costs for small firms. The move extends the maximum loan for eligible companies to CNY10 million (USD1.5 million) from CNY5 million previously. The adjustment is expected to release capital liquidity of around CNY770 billion, analysts say.

Editor: William Clegg