The People's Bank of China injected 300 billion yuan ($47.4 billion) worth of seven-day reverse repos into the banking system on Friday

Fresh Moody's downgrade of Shimao's rating also hits investor confidence, highlighting the debt travails bedevilling some bloated developers

Central bank expects a large amount of cash to come back into the banking system, while a relatively big amount of treasury bonds will mature this week, replenishing liquidity

Central bank data show that the M2 money supply - which covers cash in circulation and all deposits - increased 8.5% year-on-year