Monetary Policy Implementation Report of China for the Second Quarter of 2026

First, maintain ample liquidity in the banking system and ensure reasonable growth in the overall financial volume. Utilize a variety of monetary policy tools, including reverse repos, medium-term lending facilities, and government bond trading operations, to keep liquidity abundant. Improve the short-term interest rate adjustment mechanism by increasing the variety of overnight reverse repos in open market operations and narrowing the temporary positive and negative repo operation range from 70 basis points to 50 basis points, thereby enhancing the precision and effectiveness of monetary market interest rate regulation. Establish offshore central bank repo tools to facilitate the RMB liquidity management and RMB bond asset allocation of offshore central bank-like institutions. Guide financial institutions to balance their credit allocations effectively, providing strong support for the credit needs of the real economy. Second, promote the low-level operation of comprehensive financing costs in society. Lower the interest rates on structural monetary policy tools by 0.25 percentage points and continue to advance the transparent work on the comprehensive financing costs of corporate loans to reduce financing intermediary costs. Better leverage the self-discipline mechanism of market interest rate pricing to maintain fair competition in the market and enhance banks' independent and rational pricing capabilities. Third, incentivize and guide financial institutions to increase support in key areas. Introduce and implement a series of structural monetary policy measures, expand the scale and support scope of these tools, improve policy components, combine the refinancing and rediscounting quotas for agricultural and small enterprises, and increase the refinancing quotas for agriculture, small enterprises, scientific innovation, and technological transformation. Establish a separate refinancing quota of 1 trillion yuan for private enterprises and merge the risk-sharing tools for scientific innovation and private enterprise bonds to further assist in the optimization of economic structural transformation. Actively and steadily implement one-time credit restoration policies to efficiently and conveniently help eligible overdue individuals rebuild their credit. Fourth, maintain the basic stability of the exchange rate. Adhere to the decisive role of market supply and demand in the formation of the exchange rate, effectively utilize the exchange rate's function of adjusting the macroeconomy and international balance of payments, comprehensively implement policies to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. Encourage financial institutions to enhance their exchange rate risk hedging service capabilities. Conduct offshore RMB foreign exchange trading in the Shanghai Free Trade Zone to promote the integration of onshore and offshore RMB markets. Fifth, steadily and orderly promote the risk disposal in key areas. Gradually advance the disposal of financial risks in key institutions and regions. The interbank market data reporting database will be officially launched to enhance the transparency and monitoring capabilities of the financial market.