(Yicai Global) June 23 -- The People's Bank of China net injected CNY200 billion (USD28.3 billion) into the financial system via open market operations today, following another infusion of CNY120 billion yesterday.

The central bank conducted a seven-day reverse repo of CNY90 billion and a 14-day one of CNY110 billion this morning. The interest rates were 2.20 percent and 2.35 percent respectively. No previous reverse repo matured today.

The operations were to maintain steady liquidity in the banking system at the end of the first half year, the PBOC said.

Reverse repo agreements are primary tools financial institutions and banks use to provide temporary lending facilities to fund ongoing operations, where a buyer undertakes to temporarily buy a basket of securities for a fixed period and to sell them back at a slightly higher price.

Editor: Ben Armour