China will strengthen financial support for key areas, including expanding domestic demand, promoting technological innovation and supporting small and micro enterprises, according to a report released by the People's Bank of China (PBOC) Wednesday.
Since the beginning of the year, the PBOC has continued to implement an appropriately accommodative monetary policy, creating a supportive monetary and financial environment for high-quality economic development, according to the PBOC's second-quarter 2026 monetary policy report.
The central bank has also continued to optimize structural monetary policy tools and further improve the financing structure.
By the end of June, the growth rates of loans to the technology, green, inclusive finance, elderly care and digital economy sectors reached 12.6 percent, 14.5 percent, 7.8 percent, 23.5 percent, and 15.1 percent, respectively, all exceeding the growth rate of total loans, the report said.
The interest rates for newly issued corporate loans and mortgages are both around 3 percent, and the overall social financing cost is at a relatively low level.
In the first half of the year, China established a relending program for private enterprises, and the weighted average interest rate of newly issued loans to medium, small and micro private enterprises decreased by 40 basis points compared with the same period last year, benefiting approximately 2.5 million market entities.
The RMB exchange rate remained largely stable at a reasonable and equilibrium level, the report showed. At the end of June, the RMB appreciated by 3 percent against the U.S. dollar compared with the end of last year.
Going forward, the central bank said it will continue to implement the existing monetary policy, intensify counter-cyclical adjustments, increase efforts to expand domestic demand and optimize supply, and promote sustained, improved and better development of the economy.
It will also work to guard against the risk of exchange rate overshooting, maintain the stable operation of financial markets and resolutely prevent systemic financial risks.
China's central bank to strengthen financial support for key areas
