The People's Bank of China, the country's central bank, injected 17 billion yuan ($2.77 billion) into money markets on July 30 through seven-day reverse bond repurchase agreements, the first such move in five months, to ease concerns over a credit crunch that pushed benchmark interbank lending rates to four-week highs.

Analysts said that although the volume of the operation was limited, it sent a signal to money markets.

Liquidity eased on July 30 in response to the central bank's money injection. The seven-day Shanghai interbank offered rate, a gauge of the availability of cash in the banking system, fell 8.5 basis points to 4.97 percent, according to a weighted average compiled by the National Interbank Funding Center.

Stocks rose on July 30 after the central bank's liquidity injection, with the benchmark Shanghai Composite Index climbing for the first time in five days as it added 0.7 percent to close at 1,990.38.