PBOC Q2 Report: RMB 800 Billion Private Firm Relending; SME Loan Rates Down 40 Bps
The People's Bank of China's second-quarter 2026 monetary policy implementation report showed the balance of relending to private enterprises reached about RMB 800 billion as of end-July. Loans to small, medium and micro private enterprises extended by local corporate financial institutions totaled about RMB 15 trillion at end-June, benefiting about 2.5 million market entities. The weighted average rate on newly issued such loans in the first half fell 40 basis points year on year. The central bank said it will continue using the relending facility to guide local institutions to expand private-sector credit and improve financing access.
The People's Bank of China released its monetary policy implementation report for the second quarter of 2026. The report showed that as of the end of July, the balance of relending to private enterprises stood at about RMB 800 billion. Reflecting the policy's effect in incentivising bank lending, loans to small, medium and micro private enterprises by local corporate financial institutions reached about RMB 15 trillion at the end of the second quarter, benefiting about 2.5 million market entities.
In the first half of the year, the weighted average interest rate on newly issued loans to small, medium and micro private enterprises by local corporate financial institutions was 40 basis points lower than in the same period of 2025. The PBOC said it will continue to harness the incentive function of the private enterprise relending facility, guiding local corporate financial institutions through market-based means to increase credit supply to private enterprises and enhance the financing availability of small, medium and micro private firms.