The People's Bank of China (PBC), the country's central bank, yesterday pumped 50 billion yuan into the domestic market, the largest fund release in a single open market operation in the second half of 2008.

The central bank yesterday drained 10 billion yuan via 28-day bond repurchase operations. Since 60 billion yuan in bonds matured yesterday, the central bank on aggregate pumped 50 billion yuan into the market.

On Monday, the central bank announced 5 measures to implement a moderately easy monetary policy. Ensuring abundant liquidity of the financial system, and providing timely liquidity support to financial institutions headed the 5 measures, which means that the central bank's policy toward liquidity is to change after one year of prudent and tight monetary policy. Open market operations will be an important channel for the central bank to relax bank system liquidity.

For more details, please read the complete story in Chinese:

(http://paper.cnstock.com/paper_new/html/2008-11/12/content_65875298.htm)

(China.org.cn November 12, 2008)