Beijing, August 4: The People’s Bank of China, the nation’s central bank, recently held a work conference for the second half of 2026. During the conference, it was announced that an appropriately loose monetary policy would continue, aiming to enhance the quality and efficiency of financial services for the real economy.
The conference determined that the central bank would comprehensively utilize various monetary policy tools and adjust them in a timely manner as needed. Steps will also be taken to maintain sufficient liquidity in the market. Financial institutions will be guided to achieve a better balance in loan distribution, ensuring that the growth of social financing and money supply aligns with economic development and targeted price levels.
Additionally, the conference emphasized the need to further streamline the operation of the loan market, reduce intermediary costs associated with financing, and keep the overall cost of social financing at manageable levels. It was stated that the implementation and monitoring of interest rate policies would be continuously strengthened.
The effective use of various structural monetary policy tools was also highlighted. Coordination with local governments and industry departments will be enhanced to ensure that policy measures have a more significant impact. Furthermore, the bond market will be leveraged to promote high-quality development in the technology sector.
A risk-sharing mechanism for bonds related to science, technology innovation, and private enterprises will be carefully implemented. Efforts will also be made to explore better information sharing and data utilization in the field of technology finance. Strengthening the loan support system for small and medium-sized private enterprises and increasing their access to financial services will be a priority.
Regarding the construction and development of financial markets, the conference noted that institutional and systemic reforms would be strengthened. The macroeconomic prudent management indicator system for financial markets will be improved, and necessary policy tools will be further developed.
In addition, regulations and governance systems related to financial infrastructure will be enhanced. The monitoring and evaluation of financial market activities will also be strengthened.
To manage risks in key sectors, the conference emphasized the need to continue providing financial support for resolving loan risks associated with local government financing platforms. It was also mentioned that the process of transitioning these platforms to market-based methods would be advanced.
(Source: China Media Group, Beijing)
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