(Yicai Global) Nov. 6 -- The People's Bank of China pulled CNY100 billion (USD14.95) of liquidity out of the financial system today, after draining CNY510 billion yesterday.

The bank skipped open market operations today, in effect siphoning off CNY100, as that amount of previous seven-day reverse repo operations matured.

At present, the total amount of liquidity in China’s financial system is "reasonably ample," the regulator announced in a statement today to explain its inaction.

The bank cumulatively net injected CNY190 billion of cash last week, but started to retire it yesterday, and has net withdrawn CNY590 billion this week.

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. In this way, commercial banks can raise short-term capital. It is the equivalent of a short-term loan with the securities.

Editor: Ben Armour