The move came after state-run media looked to temper fears across trading floors, saying the rout had gone too far and that economic fundamentals remained strong
China's debt is already increasingly popular with global investors, attracted by its yield and its relative insulation from movements in other bond markets.
"This week does not necessarily mark the end of the rally. New fund flows from retail investors could continue for a while," said Thomas Gatley, China corporate analyst at Gavekal.
The volume-weighted average of the seven-day repo, considered the best indicator of general liquidity in China, jumped to 2.5007%, the highest since Nov. 13, 2020.