The People's Bank of China (PBOC) reaffirmed its commitment to maintaining a moderately loose monetary policy in 2026, emphasizing targeted support for technological innovation, green development, and small businesses. This announcement follows the central bank's latest assessment of its 2025 policy implementation, which saw expanded financial support for priority sectors despite global economic uncertainties.
In its Q4 2025 monetary policy report released this week, the PBOC highlighted improved credit structures with accelerated lending to technology (up 15% YoY), green energy projects (up 22%), and micro-enterprises. The bank credited its countercyclical measures for stabilizing financial markets during last year's commodity price fluctuations.
Looking ahead, policymakers plan to refine macroprudential tools while balancing growth support with systemic risk prevention. "We will enhance cross-cyclical adjustments to maintain liquidity at appropriate levels," stated the report, signaling continued focus on domestic demand stimulation through accessible financing for SMEs.
Analysts suggest this approach aims to cushion China's economic transition toward high-tech industries while managing property market adjustments. The PBOC's 2026 roadmap also prioritizes digital currency integration and elderly care financing solutions, reflecting evolving demographic needs.
