China's central bank drains more liquidity from market

BEIJING - China's central bank on Friday drained 20 billion yuan ($3.16 billion) from the banking system via open market operations.

The operations included 40 billion yuan of seven-day reverse repos, 30 billion yuan of 28-day reverse repos and 20 billion yuan of 63-day reverse repos, the People's Bank of China said in an online statement.

Offset by 110 billion yuan of maturing reverse repos, the operation resulted in a net withdrawal of 20 billion yuan from the market.

The interest rates for seven-day, 28-day and 63-day operations were unchanged at 2.5 percent, 2.8 percent and 2.95 percent respectively.

The central bank has made a net injection of 120 billion yuan into the market via reverse repos this week.

China plans to maintain a prudent and neutral monetary policy in 2018 as it strives to balance growth and risk prevention.