The People’s Bank of China held to a moderately loose monetary policy in its third-quarter execution report, published on Wednesday, saying it would step up countercyclical adjustment while keeping liquidity ample and overall financing conditions relatively easy. Gross domestic product grew 4.6 percent year on year over the first three quarters, the bank noted.
The stock of total social financing was up 7.1 percent year on year at the end of September and M2 money supply was up 7.2 percent, with the overnight DR001 money market rate averaging 1.34 percent over the first three quarters. New corporate loans were priced slightly below 3.0 percent in September, about 0.2 percentage points lower than a year earlier, and new personal housing loans were at about 3.1 percent.
On structure, the bank raised the technology innovation and retooling relending quota by 200 billion yuan and lifted its support ratio to 100 percent, added 500 billion yuan of agriculture and small business relending, including 300 billion yuan for private enterprises, and cut the pledged supplementary lending rate by a further 0.25 percentage points. The renminbi closed at 6.7053 per dollar at the end of September, up 4.1 percent since the end of 2025, with the CFETS index up 5.3 percent at 103.20.