PBOC/CSRC China supportive measures - in summary

  • People's Bank of China / China Securities Regulatory Commission

All of these are in the posts earlier, but collating them here in brief.

Equity Market Stabilisation:

  • Central Huijin, along with the PBOC, will step in as a quasi-stabilisation fund to help maintain stock market confidence.

  • An additional 60 billion yuan (US$8.3 billion) from long-term insurance funds will be channelled into equities under an expanded pilot program.

Targeted Liquidity and Credit Support:

  • RMB 300 billion in new re-lending funds will be allocated to support technological innovation and industrial upgrades.

  • A new RMB 500 billion re-lending facility will be introduced to finance elderly care infrastructure and broader service consumption.

  • The People’s Bank of China (PBOC) will expand the quota for capital market support tools to RMB 800 billion to deepen market-based financing.

  • A new risk-sharing mechanism will be established to back technology innovation bonds, improving credit support for strategic sectors.

Monetary Tools and Interest Rate Adjustments from the People's Bank of China:

  • The Reserve Requirement Ratio (RRR) will be lowered by 0.5 percentage points to boost banking system liquidity.

  • A temporary cut in the reserve ratio for auto finance and leasing firms will bring it down from 5% to 0%, aiming to ease sector-specific funding constraints.

  • The 7-day Reverse Repo rate, a key short-term policy rate, will be trimmed by 10 basis points to 1.4%.

  • The structural monetary policy rate will be reduced by 25 basis points to support targeted credit expansion.

  • Interest rates on individual housing provident fund loans will be lowered by 0.25 percentage points to reduce mortgage borrowing costs.

  • The Standing Lending Facility (SLF) rate will be cut by 10 basis points, further easing interbank lending conditions.

pboc People's Bank of China 26 March 2025 2

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