On January 16, the People’s Bank of China (PBOC) conducted medium-term lending facility (MLF) operations in the amount of RMB779 billion, with an interest rate of 2.75 percent, unchanged from the previous operations.
On January 18, the PBOC issued the Notice on the Issuance of Central Bank Lending to National Financial Asset Management Companies to Ease the Financial Burdens on Real Estate, providing low cost funds to national financial asset management companies to support them in the acquisition of existing projects of distressed real estate enterprises.
On January 19, the PBOC issued the Notice on Matters Relating to Extending the Carbon Emissions Reduction Facility, clarifying that the facility will be extended for two additional years until 2024, and it will include some foreign banks and local corporate banks.
On January 20, with the authorization of the PBOC, the National Interbank Funding Center (NIFC) announced the Loan Prime Rate (LPR) as follows: the one-year and the over-five-year LPR would be 3.65 percent and 4.30 percent, respectively, unchanged from the previous announcement.
On February 1, the PBOC reported to the Financial and Economic Affairs Committee of the National People’s Congress (NPC) on monetary policy implementation in 2022.
On February 7, the PBOC signed a Memorandum of Understanding (MOU) with Banco Central do Brasil (BCB) to establish Renminbi (RMB) clearing arrangements in Brazil. On February 21, the PBOC authorized the Industrial and Commercial Bank of China (Brazil) Co., Ltd. (ICBC Brazil) to function as the clearing bank for RMB business in Brazil.
On February 10, the PBOC issued the Notice on Matters Regarding the Pilot Support Scheme for Rental Housing Loans, guiding financial institutions to issue long-term loans, at their own discretion and at their own risk, for rental housing purchases by specialized rental housing operators in pilot cities.
On February 15, the PBOC conducted MLF operations in the amount of RMB499 billion, with an interest rate of 2.75 percent, unchanged from the previous operations.
On February 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and the over-five-year LPR would be 3.65 percent and 4.30 percent, respectively, unchanged from the previous announcement.
On February 20, the PBOC and the Central Bank of Egypt (CBE) renewed their bilateral currency swap agreement. The size of the agreement is RMB 18 billion/EGP 80.7 billion.
On February 24, the PBOC released the China Monetary Policy Report (Q4 2022).
On March 15, the PBOC conducted MLF operations in the amount of RMB481 billion, with an interest rate of 2.75 percent, unchanged from the previous operations.
On March 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and the over-five-year LPR would be 3.65 percent and 4.30 percent, respectively, unchanged from the previous announcement.
On March 27, the PBOC lowered the required reserve ratio (RRR) for financial institutions by 0.25 percentage points (excluding those that had already implemented an RRR of 5 percent).
On April 7, the PBOC Monetary Policy Committee held its first quarterly meeting of 2023.
On April 14, the PBOC reported to the Financial and Economic Affairs Committee of the National People’s Congress (NPC) on monetary policy implementation in Q1 2023.
On April 17, the PBOC conducted MLF operations in the amount of RMB170 billion, with an interest rate of 2.75 percent, unchanged from the previous operations.
On April 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and the over-five-year LPR would be 3.65 percent and 4.30 percent, respectively, unchanged from the previous announcement.
On April 28, the PBOC issued the Interim Measures for the Administration of Cooperation on Mutual Access Between Chinese Mainland and Hong Kong Interest Rate Swap Markets (Announcement No. 8 [2023] of the PBOC).
On May 15, the PBOC released the China Monetary Policy Report (Q1 2023).
On May 15, the PBOC conducted MLF operations in the amount of RMB125 billion, with an interest rate of 2.75 percent, unchanged from the previous operations.
On May 15, the mutual access between the Chinese Mainland and Hong Kong interest rate swap markets (Swap Connect) was officially launched.
On May 22, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and the over-five-year LPR would be 3.65 percent and 4.30 percent, respectively, unchanged from the previous announcement.
On June 9, the PBOC solicited public opinions on the Measures for Administration of Bond Valuation Business in the Interbank Bond Market (Exposure Draft).
On June 9, the PBOC and the Central Bank of Argentina (BCRA) renewed their bilateral currency swap agreement. The size of the agreement is RMB130 billion or ARS4.5 trillion.
On June 13, the PBOC lowered the standing lending facility (SLF) interest rates. Among which, the overnight rate was lowered from 2.85 percent to 2.75 percent, the 7-day rate was lowered from 3 percent to 2.9 percent, and the 1-month rate was lowered from 3.35 percent to 3.25 percent.
On June 15, the PBOC conducted MLF operations in the amount of RMB237 billion, with an interest rate of 2.65 percent, down 10 basis points from the previous operations.
On June 16, the PBOC, together with the National Administration of Financial Regulation (NAFR), the China Securities Regulatory Commission (CSRC), the Ministry of Finance (MOF), and the Ministry of Agriculture and Rural Affairs (MOA), issued the Guiding Opinions on Providing Financial Support for Advancing Rural Revitalization Across the Board and Stepping Up Efforts to Build Up China’s Strength in Agriculture, focusing on the establishment and improvement of a multi-level, wide-coverage, sustainable, and modern financial service system for rural areas and the enhancement of its capacity for financial services.
On June 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and the over-five-year LPR would be 3.55 percent and 4.20 percent, respectively, down 10 basis points from the previous announcement.
On June 28, the PBOC Monetary Policy Committee held its second quarterly meeting of 2023.
On July 12, the PBOC and the Central Bank of Laos (CBL) renewed their bilateral currency swap agreement. The size of the agreement is RMB 6 billion/LAK 15.8 trillion.
On July 17, the PBOC reported to the Financial and Economic Affairs Committee of the NPC on monetary policy implementation in H1 2023.
On July 17, the PBOC conducted MLF operations in the amount of RMB103 billion, with an interest rate of 2.65 percent and remaining unchanged from previous operations.
On July 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and over-five-year LPR would be 3.55 percent and 4.20 percent, respectively, unchanged from the previous announcement.
On July 20, the PBOC and the SAFE decided to raise the macro-prudential adjustment parameter for cross-border financing for enterprises and financial institutions from 1.25 to 1.5.
On July 31, the PBOC and the Bank of Mongolia (BOM) renewed the bilateral currency swap agreement worth RMB15 billion/MNT7.25 trillion.
On August 3, the PBOC held a meeting on providing financial support to promote development of private enterprises.
On August 4, the PBOC solicited public opinions on the Notice on Matters Relating to Over-the-Counter Businesses in the Interbank Bond Market (Exposure Draft).
On August 15, the PBOC lowered the standing lending facility (SLF) interest rates, among which the overnight rate was lowered from 2.75 percent to 2.65 percent, the 7-day rate was lowered from 2.9 percent to 2.8 percent, and the 1-month rate was lowered from 3.25 percent to 3.15 percent.
On August 15, the PBOC conducted MLF operations in the amount of RMB401 billion, with an interest rate of 2.50 percent and down 15 basis points from the previous operations.
On August 17, the PBOC released the China Monetary Policy Report (Q2 2023).
On August 18, the PBOC issued the Notice on Matters Relating to the Extension of the Policy Implementation Period for the Loan Support Scheme to Ensure Deliveries of Presold Housing Projects, explicitly extending the implementation period to the end of May 2024.
On August 21, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year LPR would be 3.45 percent, a lowering of 10 basis points from the previous announcement, and the over-five-year LPR would be 4.20 percent, unchanged from the previous announcement.
On August 30, the PBOC, together with the NAFR, the SAFE, and the All-China Federation of Industry and Commerce (ACFIC) held a meeting to provide financial support to promote the development of private enterprises.
On August 31, the PBOC and the NAFR issued the Notice on Adjusting and Optimizing Differentiated Housing Credit Policies. For households that borrow loans to buy units of commercial housing, the minimum downpayment ratios shall be uniformly set at no lower than 20 percent for commercial personal mortgage loans issued to first-time homebuyers and at no lower than 30 percent for such loans to second-time homebuyers; the interest rate floors on commercial personal mortgage loans to second-time homebuyers shall be adjusted to levels no lower than the loan prime rates (LPRs) with the corresponding maturities plus 20 basis points.
On August 31, the PBOC and the NAFR issued the Notice on Matters Concerning Lowering Interest Rates on Existing First-Home Mortgage Loans. Starting from September 25, 2023, borrowers of existing first-home mortgage loans may apply to their lending financial institutions to replace the loan with a new loan. The interest rate of the new loan is to be independently determined by the financial institution and the borrower through negotiation.
On August 31, the PBOC and the NAFR issued the Notice on Ensuring Financial Support for Flood and Disaster Prevention and Relief and Post-Disaster Recovery and Reconstruction, containing specific directions for increasing credit supply in key sectors, raising the efficiency of credit services during post-disaster recovery and reconstruction, tapping into the risk dispersion function of insurance, widening the source of funding for post-disaster reconstruction, and generally improving financial security in disaster-hit areas.
On September 15, the PBOC cut the RRR for financial institutions by 0.25 percentage points (excluding financial institutions that have already implemented an RRR of 5 percent).
On September 15, the PBOC lowered the RRR for foreign currency deposits of financial institutions by 2 percentage points, from 6 percent to 4 percent.
On September 15, the PBOC conducted MLF operations in the amount of RMB591 billion, with an interest rate of 2.50 percent and remaining unchanged from previous operations.
On September 15, the PBOC issued the Notice on Matters Relating to Extension of the Policy Implementation Period of the Loan Support Scheme for Rental Housing, explicitly extending the implementation period to the end of 2024.
On September 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year and over-five-year LPR would be 3.45 percent and 4.20 percent, respectively, remaining unchanged from the previous announcement..
On September 22, the PBOC and the NAFR released the list of China’s Systemically Important Banks of 2023.
On September 25, the PBOC Monetary Policy Committee held its third quarterly meeting in 2023.
On September 28, the PBOC, the NAFR, the CSRC, the SAFE, the Hong Kong Monetary Authority (HKMA), the Securities and Futures Commission (SFC) of Hong Kong, and the Monetary Authority of Macao (AMCM) decided to further enhance the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA), with the aim of promoting the interconnection of financial markets in the GBA.
