China's central bank continued its net cash injections via open market operations on Friday, the fourth straight day after a halt on Monday.

The People's Bank of China (PBOC) conducted 100 billion yuan (14.5 billion U.S. dollars) of reverse repos, a process by which the central bank purchases securities from banks through bidding, with an agreement to sell them back in the future.

The injection saw a net 40 billion yuan (5.8 billion U.S. dollars) pumped into the market today, offset by 60 billion yuan (8.7 billion U.S. dollars) in maturing reverse repos.

The operations included 60 billion yuan (8.7 billion U.S. dollars) of 7-day reverse repo prices to yield 2.45 percent, 20 billion yuan (2.9 billion U.S. dollars) of 14-day contracts with a yield of 2.6 percent, and 20 billion yuan (2.9 billion U.S. dollars) of 28-day agreements with a yield of 2.75 percent.

China's monetary policy in 2017 is set to be "prudent and neutral," keeping appropriate liquidity levels and avoiding large injections.

Email: zhanglingxiao@nbd.com.cn