China's central bank pumps $13bn into market

China's central bank on Thursday pumps funds into the money market for the second time this week to avoid a possible liquidity crunch ahead of a weeklong holiday. The People's Bank of China added CNY 80 billion (USD 13 billion) to the banking system through a 14-day reverse repurchase agreements at 4.1 percent yield, according to a statement on its website. The announcement came after Tuesday's CNY 88-billion (USD 14 billion) injection via six-day reverse repurchase contracts at 3.9 percent, its largest single-day liquidity injection since February 7th before the weeklong Lunar New Year holiday. Banks in China usually face higher demand for cash before public holidays due to travel and shopping. Local financial markets will be closed October 1-7 for the National Day holidays