China to maintain moderately loose monetary policy in H2FY26

August 03, 2026 (MLN): China's central bank is to continue implementing a moderately loose monetary policy in the second half (H2) of 2026, strengthening counter-cyclical adjustment and taking solid steps to promote sustained and improved economic development.

The People's Bank of China (PBOC) stated in a statement released after its work conference for the second half of the year that it will make comprehensive use of monetary policy tools, adjusting them in a timely manner as needed, APP reported.

The central bank will also maintain ample liquidity, guide financial institutions to enhance the balance of credit supply, and align the growth of social financing and money supply with expected targets for economic growth and overall price levels.

On the bond market front, the PBOC will push forward the high-quality development of a "technology board," steadily roll out risk-sharing instruments for technological innovation and private-enterprise bonds, and explore information sharing and integrated data application in the sci-tech finance sector.

The bank further stated it will improve the credit enhancement system for private enterprises and small and medium-sized enterprises (SMEs), while strengthening financial service capabilities for SMEs in H2.

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