PBOC(People's Bank of China) cut the mortgage-supplementary lending (PSL) rate by 25 bps, lowering the one-year PSL rate to 1.50% from 1.75%. The central bank said the reduction aims to better incentivize policy banks to support the real economy and national strategic priorities.

PBOC expands the scope of Pledged Supplementary Lending (PSL) to include construction of six networks — water networks, new-type power grids, computing power networks, next‑generation communications networks, urban underground pipe networks and logistics networks — and will guide policy banks to step up financing for these projects to help expand effective investment and deepen domestic demand.

PBOC raises the re-lending quota for tech innovation and technological transformation by 200 billion yuan to 1.4 trillion yuan and increases the facility's support ratio from 60% to 100%, aiming to steer banks to expand lending to SME tech firms and to support corporate equipment upgrades.

People's Bank of China raised the re-lending and rediscount quota for agriculture and small businesses by 500 billion yuan, including a 300 billion yuan increase earmarked for private enterprises. The quota rises to 4.85 trillion yuan from 4.35 trillion yuan; the private-enterprise re-lending allocation increases to 1.3 trillion yuan from 1.0 trillion yuan. PBOC said the move will further encourage locally incorporated banks to expand credit to agricultural borrowers and small, micro and private enterprises.