The People's Bank of China, China's central bank, announced adjustments on Tuesday to several monetary policy tools in an effort to promote innovation-driven, high-quality and sound economic development.

PBOC cuts the one-year PSL rate from 1.75% to 1.5% and expands pledged supplementary lending (PSL) support to the "six networks": water networks, new-type power grids, computing power networks, new-generation communication networks, urban underground pipeline networks and logistics networks, to guide policy banks in supporting the real economy and expanding effective investment.

It also increases the relending quota for sci-tech innovation and technological upgrading by 200 billion yuan ($29.7 billion) and raises its support ratio from 60% to 100%, bringing the total to 1.4 trillion yuan. 

In addition, the central bank boosts relending for agriculture, small businesses and private enterprises by 500 billion yuan, including 300 billion yuan for private enterprises.