China's central bank signals stronger policy support for tech innovation, consumption and capital market stability

The People's Bank of China (PBOC) said it is looking into creating more structural monetary policy tools, to bolster support for technological innovations, domestic consumption and foreign trade, during a quarterly meeting of its monetary policy committee held on Tuesday.

The PBOC also emphasized the effective use of financial instruments, including swap facilities of securities, funds and insurance companies, as well as stock repurchase and refinancing mechanisms, in a bid to maintain capital market stability.

Additionally, the central bank reaffirmed its commitment to supporting private businesses, calling for improved coordination mechanisms to ease financing barriers for small and micro enterprises.

Recognizing the challenges in the real estate sector, the PBOC emphasized stepping up implementation of existing financial policies and measures to stabilize the property market. It also highlighted the need to strengthen fundamental financial regulations for the sector and assist in shaping a new healthy model for the housing market.

The meeting also suggested increasing the intensity, foresight, and precision of macroeconomic adjustments. Looking ahead, the central bank indicated that it would consider timely reductions in the reserve requirement ratio (RRR) and interest rates to enhance economic resilience, based on domestic and global economic conditions and financial market trends.