China has recently introduced a comprehensive package of financial measures aimed at reinforcing economic stability and fostering sustained growth.

These policies, characterized by precision and intensity, reflect a strategic response to both domestic growth imperatives and external uncertainties, injecting renewed confidence into markets and households alike.

The People's Bank of China (PBOC), the country's central bank, announced a 50-basis-point reduction in the reserve requirement ratio, releasing approximately one trillion RMB in long-term liquidity.

Concurrently, key interest rates, including the seven-day reverse repo rate, structural monetary policy tool rates, and personal housing provident fund loan rates, were lowered by 10–25 basis points.

These moves aim to reduce financing costs for businesses and households, particularly benefiting the real estate sector through cuts in mortgage rates. The mortgage rate cuts are expected to save homebuyers' interest payments by more than 20 billion RMB per year, according to PBOC governor Pan Gongsheng.

It exemplifies a nimble and multi-pronged approach to economic governance. By coupling macro-control efforts with precision-targeted measures, the authorities are not only addressing immediate challenges but also laying the groundwork for sustainable growth.

PBOC announced more financial support through relending for sectors including sci-tech innovation, service consumption and elderly care.

It will add the quota of relending for technological innovation and upgrading by 300 billion RMB, establish a 500 billion RMB relending facility to support service consumption and elderly care, and add 300 billion RMB in relending quota to support agriculture and small businesses.

Additionally, PBOC, together with relevant departments, rolled out a series of measures to bolster the capital market, including relaxed rules for mergers and acquisitions and enhanced support for tech companies.

Regulatory bodies are fast-tracking the development of a "sci-tech board" in its bond market to promote the issuance of sci-tech innovation bonds by financial institutions, tech firms and private equity investment institutions. According to preliminary figures from the PBOC, nearly 100 market entities are preparing to issue more than 300 billion RMB worth of sci-tech innovation bonds, with further participation expected in the future.

Newly announced measures also address external headwinds by enhancing finance support and offering tailored assistance to affected enterprises.

As global uncertainties persist, these initiatives underscore China's resolve to advance its structural transformation agenda, while fostering a robust ecosystem for innovation-driven growth.