Today, Jan 15, 2026, the Chinese mainland's central bank, the People's Bank of China (PBOC), unveiled its 2026 monetary strategy after reviewing 2025 performance. Big moves on the menu? Rate cuts, mega funding for tech and SMEs, plus a boost for the property market 📊✨
Interest Rate Cuts
At a press briefing, PBOC Deputy Governor Zou Lan announced a 0.25 percentage point cut to interest rates on all structural monetary policy tools, effective Jan 19. The one-year re-lending rate falls from 1.5% to 1.25%.
"The goal is to incentivise banks to extend credit in key sectors," said Zou Lan, aligning with the Central Economic Work Conference directives.
Targeted Funding Surge
The PBOC is steering trillions toward specific corners of the economy:
- 1 trillion yuan re-lending quota for private SMEs
- +500 billion yuan quotas for agriculture and small business
- Tech innovation and transformation quota jumps from 800 billion to 1.2 trillion yuan, now including private SMEs with high R&D spending
- Merged bond risk-sharing tool bolsters private and tech firms with 200 billion yuan
Real Estate Relief
Working with the National Financial Regulatory Administration, the PBOC cut the minimum down payment for commercial property loans from 50% to 30% to tackle inventory issues.
2025 by the Numbers
By end-2025, outstanding social financing reached 442.1 trillion yuan, up 8.3% year-on-year. New financing for the year topped 35.6 trillion yuan. Broad money supply (M2) grew 8.5% to 340.29 trillion yuan, while M1 rose 3.8% to 115.5 trillion yuan. Net cash injected into the economy reached 1.3 trillion yuan. The renminbi stayed stable against a currency basket and appreciated 4.4% against the US dollar.
Overall, these steps signal a clear push to channel liquidity into private firms, high-tech sectors, and breathe new life into the property market. Stay tuned for how these measures reshape the Chinese mainland economy in 2026! 🚀
Reference(s):
cgtn.com
