source from：WSJ website
WORLD  ASIA
China Central Bank Makes Largest Cash Injection in Three Years

PBOC puts the largest amount of cash into the financial system in nearly three years
By SHEN HONG
Updated Jan. 28, 2016 12:27 a.m. ET
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SHANGHAI—China’s central bank is putting the largest amount of cash into the financial system in nearly three years, using a weekly market operation to pre-empt a holiday-induced funding squeeze and offset rapid capital outflows.

The People’s Bank of China offered 340 billion yuan (51.89 billion dollars) of short-term loans, known as reverse repurchase agreements, to commercial banks in a routine money market operation Thursday.

The central bank provided 440 billion yuan via similar tools Tuesday, the first leg of its twice-a-week liquidity-management exercises.

Given the maturity of 190 billion yuan of previously issued loans, the PBOC’s net cash injection this week totals 590 billion yuan, the biggest of its kind since early February 2013, when it reached 662 billion yuan.

The move follows an aggressive pump-priming exercise by the PBOC last week, when the central bank offered more than 1.5 trillion yuan in gross short- and medium-term lending to banks.

The eye-popping liquidity injection is partly intended to satisfy typically surging demand for cash ahead of the Lunar New Year holiday that starts Feb. 7.

It also constitutes an effort to stem accelerating capital flight as investors become more nervous about the health of China’s economy, and as the country’s main stock market has lost nearly 23% since the start of this year.

Capital outflows from China hit 500 billion dollars last year, equivalent to 13% of the country’s foreign-exchange reserves, as investors looked for better returns overseas amid growing questions about Beijing’s economic management.

China’s foreign-exchange reserves fell by a record 107.92 billion dollars in December from a month earlier, to 3.33 trillion dollars at the end of the month, the lowest level in three years.