(Yicai Global) Oct. 15 -- The People's Bank of China passed on open market operations for the ninth consecutive trading day today, citing ample liquidity in the banking system.
 

The PBOC is expecting a total of CNY40 billion (USD5.6 billion) of liquidity to flow into the monetary system after it cut the required reserve ratio for regional and city commercial banks today, it said.
 

No reverse repurchases fell due today.
 

China's central bank announced early last month it would cut the required reserve ratio for the nation's financial institutes 0.5 percentage point in the middle of the month and would trim an extra 1 point for regional and city commercial banks in two stages, starting from Oct. 15 and Nov. 15, respectively.

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