China's interbank money rate fell on December 24 after the central bank put funds into the system by selling seven-day reverse repurchase (repo) contracts for the first time in two weeks.

The People's Bank of China, the central bank, injected 21 billion yuan ($3.43 billion) through repo agreements, a process in which central banks purchase securities from banks with an agreement to resell them in the future.

In the interbank market on December 24, the seven-day Shanghai Interbank Offered Rate (Shibor), which measures the cost at which Chinese banks lend to one another, fell to 6.197 percent. It was above 8 percent before the announcement.

The rate hit a record high of above 13 percent in late June when a cash crunch hit, disturbing financial markets.