Pan Gongsheng: The People's Bank of China will increase the intensity of macroeconomic regulation, introducing three categories of ten monetary policy measures.

Today, the Governor of the People's Bank of China, Pan Gongsheng, stated at a press conference hosted by the State Council Information Office that in order to implement the spirit of the central political bureau meeting held on April 25th and further implement a moderately loose monetary policy to promote high-quality economic development, the People's Bank of China will increase the intensity of macroeconomic regulation and introduce a package of monetary policy measures, which can be categorized into three main types with ten specific policies: 1. Quantity-based policies, such as reducing the reserve requirement ratio to increase the supply of medium and long-term liquidity and maintain abundant market liquidity. 2. Price-based policies, including lowering policy interest rates, reducing structural monetary policy tool rates, and lowering the interest rates on provident fund loans. 3. Structural policies, which involve creating and implementing structural monetary policy tools to support technological innovation, expansion of consumption, and inclusive finance. The ten specific policies announced include: 1. Lowering the reserve requirement ratio by 0.5 percentage points to provide approximately 1 trillion yuan of long-term liquidity to the market. 2. Adjusting the reserve requirement ratio for automobile finance companies and financial leasing companies from the current 5% to 0% in stages. 3. Lowering the policy interest rate by 0.1 percentage point, with the 7-day reverse repurchase operation rate decreasing from 1.5% to 1.4%, potentially leading to a 0.1 percentage point reduction in loan market quotation rates. 4. Lowering the rates of structural monetary policy tools by 0.25 percentage points, including rates for various special structural tools, loans for agriculture and small businesses, and mortgage supplementary loans. 5. Reducing the interest rate on individual housing provident fund loans by 0.25 percentage points, with the interest rate on first-time home loans for over five years decreasing from 2.85% to 2.6%, and other term rates adjusting accordingly. 6. Increasing the refinancing quota for technological innovation and technological transformation by 300 billion yuan, from 500 billion yuan to 800 billion yuan, to continue supporting the implementation of the "two new" policies. 7. Establishing a 500 billion yuan "service consumption and elderly care refinancing" pool to encourage commercial banks to increase credit support for service consumption and elderly care. 8. Increasing the refinancing quota for agriculture and small businesses by 300 billion yuan to support banks in expanding loans to agriculture, micro, and private enterprises. 9. Optimizing two monetary policy tools to support the capital market by combining the 500 billion yuan swap facility for securities, funds, and insurance companies with the 300 billion yuan repurchase and holding quota for stocks, forming a combined quota of 800 billion yuan. 10. Establishing a risk-sharing tool for technological innovation bonds, where the central bank provides low-cost refinancing funds that can be used to purchase technological innovation bonds. By collaborating with local governments, market-based credit enhancement institutions, and other partners, the tool aims to share the risk of bond default losses and support the issuance of low-cost, long-term technological innovation bonds for technology companies and equity investment institutions.