PBOC injects $81b into banks

The People's Bank of China (PBOC) has injected 500 billion yuan ($81 billion) into the nation's five largest banks, said Sina.com, citing banking analyst Qiu Guanhua at Guotai Junan Securities Co.

The PBOC on Tuesday started the Standing Lending Facility operation, channeling the cash to the nation's five biggest banks for a three-month period within two days, said the report.

According to Qiu Guanhua, the reasons behind this move have two aspects, to ease the pressure on the financial system and quell fears about money drought, and it's a strategic move to replace the cut of reserve requirement ratio and interest rates.

The PBOC hasn't publicly responsed to this issue yet.