China is looking to clamp down on excessive bank lending
China's central bank has removed nearly $8bn (£4.7bn) from the money markets in a bid to control the amount of credit in the country's financial system.
According to reports, the People's Bank of China (PBOC) did so by issuing 14-day forward bond repurchase agreements, also known as forward repos.
It is the first time since June the PBOC has used forward repos, and comes after China released unusually strong economic data earlier this year.
Chinese stocks fell in Shanghai.
A trader at a Chinese commercial bank in Shanghai told the Reuters news agency that the move "sent a strong signal to the markets that the central bank is not letting liquidity ease".
"If money market conditions remain sloppy, the central bank could even step up efforts to mop up excess," he said.
China has been looking to suck excess cash from its open-market operations to reduce the risks of shadow banking, or informal lending to businesses.
Shadow banking has been identified as a major risk to China's future growth, because of the possibility of large debts turning sour.
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