Bareksa.com - China's central bank said on Tuesday that it will use various monetary tools to maintain appropriate levels of liquidity in the second half of this year.

China's central bank will inject 50 billion yuan ($8.05 billion) into the money markets through seven-day reverse bond repurchase agreements on Tuesday, traders said. The injection is the largest through open market operations since July 7.

The People's Bank of China (PBOC) injected a net 30 billion yuan into the banking system last week, after a 45 billion net drain the week before. ($1 = 6.2091 Chinese yuan)

It added that the country's main economic indicators are steadily improving.

Plunging share markets have added to concerns about the health of the world's second-biggest economy, rattling global financial markets.

China's factory sector contracted by the most in 15 months in July as shrinking orders depressed output, a preliminary private survey showed on Friday, a worse-than-expected result that comes on the heels of a stock market crash which began in June.

On Monday, China's benchmark CSI 300 equity index fell 8.5 percent, reversing a government-engineered recovery since in July.

Some analysts have highlighted tighter liquidity conditions in the money market as a risk for equities.

Maturing reverse repos will drain a net 70 billion yuan from the banking system this week. (Source: Reuters)