China's central bank said on Tuesday that it will use various monetary tools to maintain appropriate levels of liquidity in the second half of this year.
It added that the country's main economic indicators are steadily improving.
Read More Why this China stock market plunge could be different
Plunging share markets have added to concerns about the health of the world's second-biggest economy, rattling global financial markets.
China's factory sector contracted by the most in 15 months in July as shrinking orders depressed output, a preliminary private survey showed on Friday, a worse-than-expected result that comes on the heels of a stock market crash which began in June.
The People's Bank of China (PBOC) will also inject 50 billion yuan into money markets via seven-day reverse bond repurchase agreements, traders said, the largest amount injected via open market operations since July 7.
Correction: An earlier version of this article contained an incorrect date of comparison for the size of money-market injections. It should be July 7.