(Yicai Global) July 3 -- The People's Bank of China withdrew a net CNY110 billion (USD15.6 billion) from the financial system via open market operations today in its fifth straight daily drain this week.

A previous reverse repo of CNY110 billion matured today, but the PBOC conducted no new OMOs against it.

The central bank conducted no new OMOs this week as a total of CNY490 billion former ones matured during this period, thus reducing surplus cash in the banking system.

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