(Yicai Global) Aug. 5 -- The People's Bank of China withdrew another CNY30 billion from the financial system this morning by conducting no new open market operations to counter the expiration of reverse repos.

This is the third day running that the central bank has opted to forego OMOs to allow maturing reverse repos to expire, effectively pulling CNY210 billion (USD 30.12 billion) of liquidity out of the system thus far this week.

The financial system's liquidity is "reasonably ample," the bank reiterated today to explain its inaction.

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