China has cut the one-year rate on its pledged supplementary lending facility to 1.5%, lowering the cost of funding available to state policy banks for public and infrastructure projects.
The People’s Bank of China reduced the rate by 25 basis points as officials seek to support economic activity amid weak property demand and cautious domestic spending. Reuters reported that the new measures also expand targeted financing for technology, agriculture, small businesses and private companies.
Focus on targeted lending
The move is designed to direct cheaper credit toward selected areas rather than relying only on broad monetary easing. Infrastructure, water projects, power grids and technology-related investment are among the areas receiving policy attention.
The announcement follows fresh September data showing China’s factory and non-manufacturing activity returning to expansion.
Source: Reuters and People’s Bank of China. Published September 30, 2026.
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