By Chen Yixin and Gabriel Wildau
SHANGHAI (Reuters) - China's money rates fell slightly on Thursday after the People's Bank of China injected more funds into the market, signaling its intention to keep rates stable amid strong cash demand at month-end.
But dealers said that conditions remained tight, despite the slight fall in rates, and expressed concern that the central bank's action was too small to prevent a potential squeeze.
"We can hardly see banks lending money," said a dealer at a Chinese city commercial bank in Shanghai.
A dealer at a northern Chinese bank said that apart from China Development Bank <CHDB.UL>, other large banks weren't lending.
Chinese banks typically put extra cash aside at month-end to meet regulatory ratios and internal targets on deposits.
The weighted-average 14-day bond repurchase rate, whose maturity extends across the month-end period, fell 36 basis points to 5.05 percent around midday.
The benchmark seven-day repo rate fell 19 basis points to 4.13 percent. The overnight rate dropped 20 bps to 3.38 percent.
The People's Bank of China (PBOC) conducted a net injection of 72 billion yuan ($11.8 billion) into the banking system this week, the largest since end of July.
(Editing by Jacqueline Wong)