Despite the assurance of a flexible monetary policy, the announcement by China's central bank last week of repos worth 30 billion yuan ($4.9 billion) has continued to cause market jitters.

The People's Daily cited data released by the People's Bank of China on Monday, saying the broad M2 money supply reached 103.61 trillion yuan by the end of March, making up a quarter of the world's total.

The PBOC last week announced it would drain 30 billion yuan from money markets through a 28-day bond repurchase.