(Yicai Global) March 18 -- The People's Bank of China withdrew a net CNY267 billion (USD40 billion) from the country's financial system in open market operations this morning.

The central bank conducted a CNY60 billion seven-day reverse repo against a maturing one-year medium-term lending facility worth CNY327 billion.

The injection was only the second after an 11 day drought of OMOs, and came with the same 2.55 percent rate as a CNY20 billion reverse repo on March 15.

The PBOC is expected to be making more similar moves in the coming weeks to counter almost CNY1.2 trillion (USD179 billion) worth of MLFs expiring in the second quarter. 

Editor: James Boynton