China’s central bank injected 140 billion yuan into the interbank money market on Wednesday to avoid a liquidity crunch.
The People’s Bank of China announced plans for new ‘short-term liquidity’ operations; effectively cheap loans to lenders, who have suffered from after an increase in capital outflows following the devaluation of the yuan earlier this month.
The move came after the Shanghai stock market fell again on Wednesday, as Tuesday's interest rate cut failed to alleviate fears over an economic downturn.