This undated photo shows Chinese 100 yuan banknotes. (PHOTO / VCG VIA CHINADAILY.COM.CN)

BEIJING - China's central bank pumped cash into the financial system through open market operations to maintain liquidity in the market Monday.

China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's govt work report

A total of 700 billion yuan (about US$100.9 billion) was injected into the market via medium-term lending facility (MLF), according to the People's Bank of China, the central bank.

The funds will mature in one year at an interest rate of 2.95 percent.

The MLF tool was introduced in 2014 to help commercial and policy banks maintain liquidity by allowing them to borrow from the central bank using securities as collateral.

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Meanwhile, the central bank injected 50 billion yuan into the market through seven-day reverse repos at an interest rate of 2.2 percent.

A reverse repo is a process in which the central bank purchases securities from commercial banks through bidding, with an agreement to sell them back in the future.

China pursues a prudent monetary policy in a more flexible and appropriate way, according to this year's government work report.