China's central bank on Monday conducted 10 billion yuan (1.55 billion U.S. dollars) of reverse repos to maintain liquidity in the banking system.

The interest rate for the 7-day reverse repos was set at 2.2 percent, according to the People's Bank of China.

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.