The People's Bank of China, the country's central bank, conducted a massive repo injection through open market operations on October 30.

It injected a record high 395 billion yuan ($62.7 billion) into the financial system via reverse repos in order to ease a cash squeeze at the end of the month.

The central bank conducted seven-day reverse repos worth 290 billion yuan ($46.49 billion) and offered 105 billion yuan ($16.83 billion) in 14-day contracts. Bid interest rates remain stable at 3.35 percent and 3.6 percent, respectively, said the bank.

Shi Lei, an analyst with Ping'an Securities, said the central bank's massive repo injection demonstrates its intention to stabilize market rates and bring them down to its target range.

The central bank conducted reverse repos when easing money supplies to prevent a rebound in housing and commodity prices.

"Open market operations will become the central bank's most important policy tool in managing liquidity," said Guo Tianyong, a banking researcher at the Central University of Finance and Economics.