CHINA'S central bank yesterday expanded liquidity support for small businesses and agricultural-related services by promising to buy 12 billion yuan (US$1.96 billion) of bills from commercial banks.

Some branches of the People's Bank of China have been granted the rediscount quota to support economic restructuring, the bank said in a statement.

The move comes as the PBOC bids to improve credit structure and raise liquidity for financial institutions that meet prudent conditions, it said.