PBOC Launches Four Targeted Tools, 700B Yuan Total: what are the key facts?

On September 29, the PBOC rolled out four targeted tools: PSL, a sci-tech innovation relending facility, an agricultural and small-business relending facility, and housing loan interest subsidies.

PBOC Launches Four Targeted Tools, 700B Yuan Total: what are the key facts?

The one-year PSL rate was cut from 1.75% to 1.5%, and its support scope added six networks including water networks and computing power networks.

PBOC Launches Four Targeted Tools, 700B Yuan Total: what are the key facts?

The sci-tech innovation relending facility was expanded by 200 billion yuan to a total of 1.4 trillion yuan, and the reimbursement ratio for bank fronted funds was raised from 60% to 100%.

PBOC Launches Four Targeted Tools, 700B Yuan Total: what are the key facts?

The agricultural and small-business relending facility was expanded by 500 billion yuan to a total of 4.85 trillion yuan, of which the quota for private enterprises rose by 300 billion yuan to 1.3 trillion yuan.

PBOC Launches Four Targeted Tools, 700B Yuan Total: what are the key facts?

Housing loan interest subsidies are funded by the fiscal authority, with the central government covering 90% and local governments 10%, and the implementation period is tentatively set at one year.

Physix Frontier · News Briefing Card (enbrief · Oct 6, 2026)

PBOC Launches Four Targeted Tools, 700B Yuan Total

KEY FACTS

On September 29, the PBOC rolled out four targeted tools: PSL, a sci-tech innovation relending facility, an agricultural and small-business relending facility, and housing loan interest subsidies.
The one-year PSL rate was cut from 1.75% to 1.5%, and its support scope added six networks including water networks and computing power networks.
The sci-tech innovation relending facility was expanded by 200 billion yuan to a total of 1.4 trillion yuan, and the reimbursement ratio for bank fronted funds was raised from 60% to 100%.
The agricultural and small-business relending facility was expanded by 500 billion yuan to a total of 4.85 trillion yuan, of which the quota for private enterprises rose by 300 billion yuan to 1.3 trillion yuan.
Housing loan interest subsidies are funded by the fiscal authority, with the central government covering 90% and local governments 10%, and the implementation period is tentatively set at one year.

KEY DATA

7000亿Total quota of the four tools

1.5%One-year PSL rate

1.4万亿Total size of sci-tech innovation relending

4.85万亿Total quota of agricultural and small-business relending

PHYSIX OBSERVATION

This time there is no reserve requirement cut and no rate cut; instead, the PBOC is going through targeted channels, which shows that aggregate easing is constrained by banks' net interest margins and the exchange rate. The flow of funds is mapped out in advance, with central SOEs and SOEs taking orders first, while small and medium-sized enterprises are judged by their qualifications. For ordinary people, unchanged mortgage rates are good news, but deposit interest is likely to keep shrinking.

Source: enbrief original report ↗