The People's Bank of China (PBC), the central bank, continued to inject liquidity into the banking system on August 6, with 12 billion yuan ($1.96 billion) of seven-day reverse repurchase agreement (repo) operations.

The yield of the reverse repo, a process whereby the central bank purchases securities from commercial banks with an agreement to resell them at a future date, fell from 4.4 percent to 4 percent, according to a PBC statement.

Changes in the yields of the reverse repo rate usually reflect how the central bank views the current borrowing costs in the market and how it will guide future lending rates.

The injection is the third since July 30, when the central bank resumed the reverse repo sales after a suspension of about six months. But experts said the central bank's move does not mean a change in its prudent monetary policy.