China's Central Bank on Tuesday continued to pour liquidity into the financial system

the people’s Bank of China said that the injection of liquidity through operations in the open market this week showed its determination to stabilize expectations and restore confidence of the market, according to Reuters.

on Monday and Tuesday, China’s Central Bank has poured into the financial system in the aggregate 1.7 trillion yuan ($242,74 billion) in the framework of the reverse REPO.

on Tuesday, the regulator has poured into the banking system, 500 billion yuan ($71,21 billion), including 380 billion in the 7-day reverse REPO and 120 billion yuan in 14-day transactions. On Monday, the Bank of China poured into the system 1.2 trillion yuan.

the Regulator has decided to help the markets to get rid of panic amid the spread of a new type of coronavirus. However, the new amounts of liquidity failed to calm down the traders.

the Financial market of China, returning on Monday to work after a long vacation, have experienced a sharp decline. Stock market capitalization declined by $393 billion on Tuesday, however, the volatility has decreased.

representatives of the regulator has previously stated that they intend to provide market stability and will use all the available Central Bank instruments.

on Tuesday, the people’s Bank of China said that larger-than-expected injections of liquidity should reduce financing costs and ease the financial pressure on small and micro enterprises.