The People's Bank of China has adjusted and improved a number of monetary policy tools to increase support for the real economy.

China News Service, Beijing, September 29th: The Central Bank of China announced on the 29th that in order to implement a moderately loose monetary policy, it decided to further adjust and improve several monetary policy tools to create a suitable monetary and financial environment for steady economic growth, high-quality development, and stable operation of the financial market.

The first is to lower the mortgage supplementary loan (PSL) interest rate by 0.25 percentage points. The one-year mortgage supplementary loan interest rate has been reduced from 1.75% to 1.5%, which will better encourage policy banks to support the real economy and serve the national strategy.

The second is to expand the areas of mortgage supplementary loan support. Incorporate the construction of "six networks" such as water networks, new power grids, computing power networks, new generation communication networks, urban underground pipe networks, and logistics networks into the field of mortgage supplementary loan support, guide policy banks to increase financial support for the construction of the "six networks", help expand effective investment, and deeply tap the potential of domestic demand.

The third is to increase the re-loan quota for technological innovation and technological transformation by 200 billion yuan (RMB, the same below), and increase the re-loan support ratio from 60% to 100%. After the increase, the re-loan quota for technological innovation and technological transformation has increased from 1.2 trillion yuan to 1.4 trillion yuan, with a higher support ratio, which will help guide banks to increase loans to small and medium-sized technology enterprises and better support enterprises to expand investment in equipment upgrades in key areas.

Fourth, the re-loan quota for supporting agriculture and small businesses will be increased by 500 billion yuan, of which the re-loan quota for private enterprises will be increased by 300 billion yuan. After the increase, the re-loan and re-discount quota for supporting agriculture and small businesses has increased from 4.35 trillion yuan to 4.85 trillion yuan, of which the re-loan quota for private enterprises has increased from 1 trillion yuan to 1.3 trillion yuan. This will further encourage local corporate banks to increase credit support for agriculture-related and small and micro enterprises, especially small, medium and micro private enterprises.