BEIJING, July 19 (Reuters) - Shanghai zinc jumped by the daily limit of 6 percent on Thursday and hit a one-week top following a report that the Chinese central bank plans to boost liquidity in the banking sector, while falling inventories and a weaker yuan also underpinned the base metal. The People's Bank of China plans to introduce incentives that will boost the liquidity of commercial banks, helping them to expand lending, Reuters reported early on Thursday. Industry sources at Chinese metals firms have complained of tight liquidity this year. Zinc supply is also looking tighter, with Chinese production falling year-on-year in June and Shanghai Futures Exchange zinc stocks ZN-STX-SGH at their lowest level in 10 years. London Metal Exchange zinc posted its biggest daily jump in almost a year on Wednesday. The metal "benefited from a short-covering rally, after the recent sell-off had seen short positions bolstered significantly," ANZ said in a note. FUNDAMENTALS * SHANGHAI ZINC: The most-traded September zinc contract on the ShFE touched its highest since July 10 and was up 4.4 percent at 21,325 yuan ($3,165.97) by the mid-session interval. It gained 0.8 percent on Wednesday. * LME ZINC: Three-month zinc on the LME rose as much as 2.1 percent to $2,655 a tonne, following a 3.5 percent gain in the previous session, and was last up 0.3 percent at $2,607. It declined 23 percent between early June and Monday's one-year low amid fears of oversupply. * CHINA: China's zinc output fell 5 percent year-on-year to 475,000 tonnes in June, the National Bureau of Statistics said on Wednesday. * TECHNICALS: Indicating near-term supply tightness in zinc, LME cash zinc traded at a premium of $31 a tonne to the three-month price CMZN0-3, up from an $8.50 premium on July 12. * OTHER METALS: All other base metals were trading higher with the exception of London nickel, which edged down 0.3 percent. Copper added 0.7 percent in Shanghai and 0.2 percent in London, but zinc's sister metal lead was the next best performer, jumping 1.8 percent in Shanghai. * COPPER: Three senior executives at Jiangxi Copper Co , one of China's biggest copper producers, have left their roles, the company said in a stock exchange filing on Wednesday, in a major managerial shake-up at the state-run firm. * In the spot market, the onshore yuan opened at 6.7227 per dollar and fell to a low of 6.7424 per dollar at one point, the weakest since July 28, 2017.