At an expanded Party committee meeting chaired by Governor Pan Gongsheng, the People's Bank of China set out its 2026 work priorities following the National People's Congress and Chinese People's Political Consultative Conference sessions, reaffirming a “moderately loose” monetary policy stance alongside targeted financial support, financial risk mitigation, and further reform and opening-up. Implementation priorities include using a mix of reserve requirement ratio adjustments, purchases and sales of government bonds, the medium-term lending facility and reverse repos to keep liquidity ample, and aligning growth in social financing and money supply with economic growth and the expected price-level target. The agenda also covers closer steering and supervision of interest-rate policy transmission, standardising financing intermediary fees to keep overall funding costs low, stronger market communication and transparency, and maintaining the renminbi exchange rate basically stable at an equilibrium level. On credit support, the plan calls for optimising structural monetary policy tools and improving coordination with fiscal measures such as interest subsidies, guarantees and risk-cost sharing, with a focus on expanding domestic demand, technological innovation and small and micro enterprises. Risk work includes ongoing efforts to address local government financing vehicle debt risks, market- and law-based handling of risks at small and medium-sized financial institutions, maintaining orderly functioning of equity, bond and foreign-exchange markets, and studying a liquidity support mechanism for non-bank financial institutions under specific scenarios; reform priorities include advancing amendments to the PBOC Law and a Financial Stability Law, strengthening macroprudential frameworks, and deepening cross-border market and payment-system connectivity, including support for Shanghai and Hong Kong as international financial centres.

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