The People's Bank of China (PBOC) has lowered its relending rate for share buybacks and shareholding increases by 0.25 percentage points to 1%, effective Nov. 4, 2026. It will also provide sufficient funding allocations to meet banks' relending needs in full, supporting lending to listed companies and major shareholders. The facility provides 100% funding support for eligible loans by 21 nationwide banks and five systemically important city commercial banks. Relending is available for one year and can be extended according to banks' needs. Banks may add an appropriate margin to the relending rate and set loan maturities and interest rates accordingly. Following a Nov. 2 meeting on the facility, banks have submitted applications for more than CNY 200 billion in relending allocations.
PBOC cuts relending rate for share buybacks and shareholding increases to 1%
The People's Bank of China reduced its relending rate for share buybacks and shareholding increases to 1%, a cut of 0.25 percentage points effective Nov. 4, 2026. The facility offers 100% funding support for eligible loans by 21 nationwide banks and five systemically important city commercial banks. Banks have requested more than CNY 200 billion in allocations since a Nov. 2 meeting, and the central bank will continue to meet their relending needs in full.