The People's Bank of China (PBC) has announced a reverse repo contract worth 192.3 billion yuan with a seven-day term at an interest rate of 1.50%.

The central bank of China aims to maintain stable liquidity in the banking system at year-end.

A reverse repo is a tool used by central banks to manage liquidity. The PBC purchases securities from commercial banks through a bidding process, with the agreement to sell them back in the future. In summary, the central bank of China seeks to inject short-term liquidity into commercial banks.