FINANCE

PBOC Signals Continued Easing in 2026, Eyes Non-Bank Stability Tools

Published: Jan. 7, 2026 12:34 a.m. GMT+8

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The People’s Bank of China. Photo: VCG

The People’s Bank of China pledged to maintain a moderately accommodative monetary policy in 2026 to keep financing costs low and support high-quality economic development, according to a statement released after its annual work conference.

At a meeting held on Jan. 5 to 6, the People’s Bank of China (PBOC) said it would deploy a mix of monetary policy tools — including reserve requirement ratio and interest rate cuts — to ensure ample liquidity and encourage reasonable credit expansion.

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The People’s Bank of China will keep a moderately accommodative monetary policy in 2026, using tools like reserve requirement and interest rate cuts to ensure liquidity and credit growth.
The PBOC plans tighter oversight of small financial institutions, transparency on personal loan costs, and support for reducing local government debt burdens.
A new liquidity mechanism for nonbank institutions is proposed, alongside improvements to the Bond Connect and Swap Connect with Hong Kong.

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Who’s Who

Caixin: Caixin is mentioned as the recipient of information from "industry insiders" who discussed how liquidity strains at nonbank firms can lead to or worsen systemic risks. This suggests Caixin is a financial news outlet that engages with industry experts.

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What Happened When

September 2024：: A pilot program requiring disclosure of the full cost of corporate loans was launched by the People's Bank of China.

October 2025：: PBOC Governor Pan Gongsheng stated that the central bank was considering establishing a liquidity provision mechanism for nonbank financial institutions.

January 5, 2026 to January 6, 2026：: The PBOC held its annual work conference, where it outlined its 2026 monetary policy stance and discussed expansion of loan cost disclosure and nonbank liquidity provisions.

2026：: The PBOC pledged to maintain a moderately accommodative monetary policy throughout the year.

2026：: The program requiring lenders to disclose the full cost of personal loans, based on the previous corporate loan pilot, was rolled out nationwide.

2026：: The PBOC stated it would support improvements to the Bond Connect and Swap Connect programs connecting Chinese mainland and Hong Kong financial markets.