The State Council Information Office held a press conference on the afternoon of Wednesday, July 15, 2026, to discuss the implementation of monetary policy and the release of financial statistics for the first half of the year.
Officials from the People's Bank of China (PBOC), including Deputy Governor and Spokesperson Zou Lan, Director-General of the Monetary Policy Department Xie Guangqi, and Director-General of the Survey and Statistics Department and Spokesperson Yan Xiandong, provided an overview and answered questions from the press.
Key Highlights of Monetary Policy Implementation
Deputy Governor Zou Lan stated that since the beginning of 2026, the PBOC has continued to implement a moderately accommodative monetary policy. Building on existing measures, a series of targeted structural policy tools were introduced early in the year, and further reforms to the monetary policy framework were announced at the recent Lujiazui Forum.
The central bank has maintained ample liquidity in the banking system through various tools, including reverse repos, medium-term lending facilities, and government bond transactions. In the first half of the year, these operations effectively offset a liquidity gap of approximately 1 trillion yuan.
To enhance the precision of short-term interest rate management, the PBOC introduced an overnight reverse repo operation at the end of June and narrowed the interest rate corridor for temporary repos from 70 basis points to 50 basis points.
Efforts have been made to keep overall financing costs for the real economy at historically low levels. The weighted average interest rate for newly issued corporate loans in June was around 3.0%, approximately 20 basis points lower than the same period last year.
Financial support has been increased for key sectors. This includes establishing a 1 trillion yuan relending facility for private enterprises and increasing quotas for relending tools supporting technological innovation and equipment upgrades.
The central bank has also worked to maintain stable financial market operations, keeping the RMB exchange rate fundamentally stable at an adaptive and equilibrium level.
Financial Data Overview
Director-General Yan Xiandong presented key financial data for the first half of 2026.
Broad money supply (M2) grew by 8.0% year-on-year at the end of June, while the stock of aggregate financing to the real economy increased by 7.4%. Both growth rates continued to outpace nominal GDP growth.
New RMB loans issued in the first half totaled 10.72 trillion yuan, while net corporate bond financing reached 2.07 trillion yuan, a significant year-on-year increase.
Credit structure continued to improve, with outstanding loans to micro and small businesses, industrial sectors, and the service sector (excluding real estate) growing faster than the overall loan growth rate.
Structural Policy Tools and Market Reforms
Director-General Xie Guangqi detailed the implementation of structural monetary policy tools. The 1 trillion yuan private enterprise relending facility, launched in January, had already seen its outstanding balance exceed 760 billion yuan by the end of the first quarter, effectively encouraging lending to small and medium-sized private firms.
The technological innovation and equipment upgrade relending facility, with a total quota of 1.2 trillion yuan, has supported over 1.5 trillion yuan in related loans as of the end of April.
Deputy Governor Zou Lan elaborated on two key measures to improve the short-term interest rate mechanism: optimizing the temporary repo facility and introducing the overnight reverse repo operation. These aim to enhance the precision of liquidity management.
Outlook and Future Direction
Looking ahead, the PBOC stated it will continue to implement a moderately accommodative monetary policy, adjusting the intensity, pace, and timing of measures based on domestic and international economic and financial developments. The focus will be on strengthening counter-cyclical and cross-cyclical adjustments to support high-quality economic development and financial market stability.
Regarding the RMB exchange rate, officials noted it has remained broadly stable with two-way fluctuations. The CFETS RMB Index appreciated by 4.7% in the first half of the year. The PBOC will continue to let market forces play a decisive role in determining the exchange rate while keeping it fundamentally stable at an adaptive and equilibrium level.
Development of Offshore RMB Market
In response to questions about developing the offshore RMB market, officials outlined several key areas of focus: ensuring ample and stable offshore RMB liquidity, enriching the pool of offshore RMB assets, activating trading of offshore RMB financial products, and improving related financial infrastructure.
A pilot program for offshore RMB foreign exchange trading in the Shanghai Free Trade Zone was launched in June, allowing six designated banks to conduct such trades directly with overseas entities.
Panda Bond Market Growth
Deputy Governor Zou Lan highlighted the rapid expansion of the Panda bond market. In the first half of 2026, Panda bond issuance exceeded 160 billion yuan, a 69% year-on-year increase. Cumulative issuance has surpassed 1.3 trillion yuan, with issuers from 24 countries and regions.
The participation of international institutions, including foreign governments, multilateral development banks, and large multinational corporations, reflects growing confidence in China's financial markets and the RMB. The PBOC will continue to support the high-quality development of the Panda bond market.