There are three types of money market instruments:

1. Interbank lending

On January 3,1996, a nationwide unified interbank lending computer network was put into operation on a trial basis, and the nationwide unitary, open, order interbank lending market has been established. The interbank lending market was not unified prior to this date. The establishment of unified interbank market has linked all interbank markets across the country. The first publication of the China interbank offered rate (CHIBOR) was on January 4 1996. By the end of 1996, the transaction values totaled amount came to RMB587.161 billion. On June 1, 1996, the PBC gave up control over the upper interest rate limit for interbank lending. This is now determined by the market. The central bank regulates market interest rates indirectly.

The nationally integrated interbank lending market consists of two levels. The first level- national level - links all the headquarters of the commercial banks and the regional financing centers through a computer network. The second level - regional level - links the branches of banks at various administrative levels and non-bank financial institutions through the regional financing intermediaries who buy funds from the financial institutions with excessive money and sell to the institutions short of funds. The financing intermediaries can go to the first level to meet funding imbalances at the second level.

The interbank lending instruments include 7 types of maturities: 1 day, 7-day, 20-day, 30-day, 60-day, 90-day, and 120-day.