BEIJING - The People's Bank of China (PBOC), China's central bank, on Wednesday pumped 270 billion yuan ($39 billion) into the financial system through open market operations.

To maintain reasonable and sufficient liquidity, the central bank conducted the operations with seven-day reverse repos at an interest rate of 2.55 percent.

Net liquidity injection was 250 billion yuan on Wednesday, as previous reverse repos worth 20 billion yuan became mature.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China will keep its prudent monetary policy "neither too tight nor too loose" while maintaining market liquidity at a reasonably ample level in 2019.