The People's Bank of China unveiled a series of measures targeting a range of industries, in an effort to help boost growth during the early days of 2026.
According to the Wall Street Journal, People's Bank of China Deputy Governor Zhou Lan said at a press conference on Thursday that the central bank will cut interest rates on its structural policy instruments by 25 basis points on January 19. These monetary policy tools are used to address specific sectors of the Chinese economy.
The technology innovation lending program will also be expanded by 400 billion yuan to reach 1.2 trillion yuan, as officials seek to support small and medium-sized technology companies. The lending quota for agricultural and small enterprises will also be increased by 500 billion yuan.
The down payment for commercial real estate will also be reduced to 30%. Zhu indicated that this is intended to reduce the amount of inventory in the commercial real estate market, according to the Wall Street Journal.
The People's Bank of China said in a statement that these steps will provide support for key strategic areas and weaknesses in the economy.
The Chinese yuan fell after the announcement, but later recovered some of its losses.
These announcements come at a time when Beijing is under pressure to introduce measures to help an economy struggling with weak consumer spending and a prolonged housing crisis. Growth in the world's largest economy is expected to slow this year compared to 2025, but maintain that pace in 2027, according to a recent Reuters poll.
