China's central bank said Wednesday that it had held the first joint working group meeting with the Ministry of Finance to discuss treasury bond trading in its open market operations.

The two authorities established an operating mechanism of the joint working group, and exchanged their views on the country's bond market development at the meeting, according to a statement from the People's Bank of China.

Buying and selling treasury bonds in its open market operations is an important means for the central bank to enrich the monetary policy toolbox and strengthen liquidity management, according to the meeting.

The two authorities will coordinate development and security, strengthen policy synergy, maintain the stable development of the bond market, and provide a sound environment for central bank's treasury bond trading in its open market operations.

The central bank conducted open market treasury bond transactions in August and September, resulting in a net purchase of bonds with a face value of 100 billion yuan ($14.17 billion) and 200 billion yuan, respectively.

Analysts interpreted the net bond purchase by the central bank as a clear signal of its intensified monetary policy efforts to support stable economic growth and expand domestic demand.

Pan Gongsheng, governor of the People's Bank of China, told a press conference on Sept 24 that the central bank had incorporated the trading of treasury bonds into the monetary policy toolbox. He also noted that the bank is working with the Ministry of Finance to study on improving the issuance pace, maturity structure, and custody system of treasury bonds.