People's Bank of China Adjusts and Refines Several Monetary Policy Tools. On the basis of giving full play to the effectiveness of existing policies, the People's Bank of China has decided to further adjust and refine several monetary policy tools.

First, the interest rate on Pledged Supplementary Lending (PSL) is lowered by 0.25 percentage points. The one-year PSL interest rate will drop from 1.75% to 1.5%, providing stronger incentives for policy banks to support the real economy and serve national strategies.

Second, the scope of PSL support is expanded. The construction of the "six networks" — water networks, new-type power grids, computing power networks, next-generation communication networks, urban underground pipeline networks, and logistics networks — will be included in the areas supported by PSL, guiding policy banks to increase financial support for the construction of these "six networks," helping to expand effective investment and further tap the potential of domestic demand.

Third, the quota for relending for scientific and technological innovation and technological upgrading is increased by 200 billion yuan, and the support ratio for this relending facility is uniformly raised from 60% to 100%. After the increase, the quota for relending for scientific and technological innovation and technological upgrading will rise from 1.2 trillion yuan to 1.4 trillion yuan, with a higher support ratio, which will help guide banks to increase lending to small and medium-sized technology enterprises and better support enterprises in expanding investment in equipment upgrading in key areas.

Fourth, the quota for relending to support agriculture and small businesses is increased by 500 billion yuan, of which the relending quota for private enterprises is increased by 300 billion yuan. After the increase, the quota for relending to support agriculture and small businesses and for rediscounting will rise from 4.35 trillion yuan to 4.85 trillion yuan, with the relending quota for private enterprises increasing from 1 trillion yuan to 1.3 trillion yuan, which will further incentivize local legal-person banks to increase credit support for agriculture-related and small and micro enterprises, especially small and medium-sized private enterprises.