On January 14, 2025, the People's Bank of China (PBOC) outlined its financial support strategies aimed at fostering high-quality economic development.

PBOC Deputy Governor Xuan Changneng emphasized four major adjustments to monetary policy designed to stimulate economic recovery throughout 2024.

In a significant move, the PBOC reduced the reserve requirement ratio twice by a total of 1 percentage point and cut policy interest rates by 0.3 percentage points.

As a result of these efforts, loan interest rates have decreased, with corporate loans now at approximately 3.43 percent and personal mortgage rates around 3.11 percent.

The PBOC also introduced two capital market support tools aimed at enhancing capital market expectations and stabilizing the real estate market.

The central bank is focused on maintaining stable monetary and credit growth, utilizing various tools to ensure adequate liquidity and lower loan interest rates.

By the end of 2024, social financing had grown by 8.0 percent, the broad money supply (M2) increased by 7.3 percent, and yuan loans rose by 7.6 percent, all exceeding nominal economic growth rates.

Looking ahead, the PBOC plans to enhance macroeconomic policies to support economic and social development goals, adapting to changing domestic and international conditions.

The central bank is also working to improve the transmission of policy rates and stabilize the yuan's value within a reasonable range.

To further support the housing sector, the PBOC launched an additional re-loan of 300 billion yuan, which includes removing the lower limit on mortgage rates, potentially saving borrowers about 150 billion yuan annually.

Additionally, a re-loan program of 500 billion yuan was established to bolster technology innovation and upgrades in small and medium-sized enterprises.

Xuan highlighted improvements in loan structures, particularly for the manufacturing sector and small enterprises, indicating a commitment to sustainable development.