CHINA'S central bank said on Monday it will carry out temporary bond repurchase agreements or reverse repos starting from Monday, a move analysts said will diversify China's monetary policy toolkit to ensure stable financial market operations, while signaling the improvement of a market-based system for interest rate regulation.

In order to keep liquidity reasonable and ample in the banking system and improve the accuracy and effectiveness of open market operations, the People's Bank of China (PBOC) will conduct temporary bond repurchase or reverse repos depending on market situation between 4 p.m. and 4:20 p.m. each working day, the central bank said in a statement.