The People's Bank of China has pumped $US5 billion into the domestic banking system to ease concerns over a credit squeeze that has caused rising interest rates.
The bank did not explain its actions, but the BBC reports there has been growing concern over the last few days over the availability of credit.
That was reflected in the interest rates banks charge each other.
On Monday, seven day bond repurchase rate rose to 8.93%, its highest level since June, but fell to 6.56% after the bank added funds to the banking system
