(Yicai Global) Jan. 31 -- China's central bank injected a fresh round of funds into the country's financial system today to maintain liquidity at a "reasonably ample" level ahead of the Chinese New Year holiday.
The People's Bank of China conducted a 14-day reverse repo today to the tune of CNY50 billion (USD7.4 billion) against no maturing previous reverse repos.
It conducted the same scale of open market operation yesterday after seven working days of inactivity.
The 14-day rate was offered at 2.7 percent, unchanged from the previous open market operations.
The move pushed most Shanghai Interbank Offered Rates lower, though the overnight SHIBOR was still up 23.59 basis points at 2.2380 percent, indicating a short-term liquidity squeeze as the holiday approaches.
The one-week term SHIBOR rate fell 0.90 basis point to 2.7560 percent while the one-month rate fell 0.1 basis point to 2.8390 percent.