On January 15, with RMB779 billion worth of medium-term lending facility (MLF) expired, the People’s Bank of China (PBOC) conducted MLF operations in the amount of RMB995 billion, with an interest rate of 2.5 percent, unchanged from the previous operations.
On January 22, 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 3.45 percent and 4.20 percent, respectively, unchanged from the previous announcement.
On January 24, with the joint efforts of the PBOC and the Hong Kong Monetary Authority (HKMA), RMB government bonds and policy financial bonds under the Northbound Bond Connect were included in the list of eligible collateral for its Renminbi Liquidity Arrangement (RMBLA).
On January 25, the PBOC cut the interest rate on central bank lending for rural development, the interest rate on central bank lending for micro and small businesses (MSBs), and the central bank discount rate by 0.25 percentage points. After the cuts, the three-month, six-month, and one-year interest rates on central bank lending for rural development and MSBs registered at 1.45 percent, 1.65 percent, and 1.75 percent, respectively, and the central bank discount rate registered at 1.75 percent.
On February 5, the PBOC cut the required reserve ratio (RRR) for financial institutions by 0.5 percentage points (excluding those that had already been subject to an RRR of 5 percent).
On February 8, the PBOC released the China Monetary Policy Report (Q4 2023).
On February 18, with the expiration of RMB499 billion of MLF, the PBOC conducted MLF operations in the amount of RMB500 billion, with an interest rate of 2.5 percent, unchanged from previous operations.
On February 20, with the authorization of the PBOC, the NIFC announced the LPR as follows: the one-year LPR would be 3.45 percent, unchanged from the previous announcement, and the over-five-year LPR would be 3.95 percent, down 25 basis points from the previous announcement.
On February 29, to further clarify the requirements for over-the-counter (OTC) bond business varieties, trading methods, and investor account opening, facilitate the participation of residents and other institutional investors in bond investments, expand the channels for people to increase property income, optimize the structure of the financial system, and enhance the operational efficiency of the bond market, the PBOC issued the Notice on Matters Concerning OTC Business in the Interbank Bond Market.
On March 15, with the expiration of RMB481 billion of MLF, the PBOC conducted MLF operations in the amount of RMB387 billion, with an interest rate of 2.5 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 3.45 percent and 3.95 percent, respectively, unchanged from the previous announcement.
On March 29, the PBOC Monetary Policy Committee held its first quarterly meeting of 2024.
On April 1, the PBOC launched central bank lending for sci-tech innovation and technological transformation, with a quota of RMB500 billion and an interest rate of 1.75 percent, to encourage and guide financial institutions to step up financial support for technology–based small and medium-sized enterprises (SMEs) as well as projects that involve technology transformation and equipment renewal in key areas.
On April 7, the State Administration of Foreign Exchange (SAFE) issued the Notice on Further Optimizing Management of Foreign Exchange Operations Related to Trade to optimize foreign exchange business processes and procedures, further promote cross-border trade facilitation, and effectively enhance the quality and efficiency of services to the real economy.
On April 10, the PBOC, in conjunction with the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Civil Affairs, issued the Notice on Matters Concerning the Continuation of Implementation of Special Central Bank Lending for Inclusive Elderly Care, clarifying the continuation of implementation of special central bank lending for inclusive elderly care up to 2024, expanding the scope of pilots to the entire country, and extending support to the operation of public welfare and inclusive elderly care institutions, the construction of in-home community-based elderly care systems, and the manufacturing of elderly care products included in catalogues.
On April 15, the PBOC reported to the Commission for Financial and Economic Affairs of the National People's Congress on implementation of monetary policy in the first quarter of 2024.
On April 15, with the expiration of RMB170 billion of MLF, the PBOC conducted MLF operations in the amount of RMB100 billion, with an interest rate of 2.5 percent, unchanged from previous operations.
On April 22, with the authorization of the PBOC, the National Interbank Funding Center (NIFC) announced the LPR as follows: the one-year and the over-five-year LPR would be 3.45 percent and 3.95 percent, respectively, unchanged from the previous announcement.
On May 10, the PBOC released the China Monetary Policy Report (Q1 2024).
On May 13, the PBOC, the Securities and Futures Commission of Hong Kong, and the HKMA announced that they will further optimize the mutual access arrangements between the Mainland and Hong Kong interest rate swap markets (Swap Connect) to facilitate the high-quality opening-up of China's financial markets.
On May 15, with the expiration of RMB125 billion of the MLF, the PBOC conducted MLF operations in the amount of RMB125 billion, with an interest rate of 2.5 percent, unchanged from previous operations.
On May 17, the PBOC issued the Notice on Adjusting Mortgage Rate Policies to remove the nationwide policy floor for interest rates on mortgage loans for first-time and second-time home buyers.
On May 17, the PBOC issued the Notice on Lowering Interest Rates on Personal Housing Provident Fund Loans to lower the interest rates on personal housing provident fund loans by 0.25 percentage points.
On May 17, the PBOC and the National Financial Regulatory Administration (NFRA) issued the Notice on Adjusting the Minimum Down Payment Ratio for Personal Housing Loans, announcing that for households that purchase commercial housing with personal housing loans, the minimum down payment ratio shall be set to no less than 15 percent for first-time homebuyers and to no less than 25 percent for second- home purchases.
On May 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 3.45 percent and 3.95 percent, respectively, unchanged from the previous announcement.
On June 3, the PBOC issued the Notice on Matters Relating to the Establishment of the Central Bank Lending Facility for Government-subsidized Housing to encourage and guide financial institutions to provide support for purchases made by local state-owned enterprises of completed but unsold commodity housing, which will then be resold or rented as affordable housing.
On June 17, with the expiration of RMB237 billion of the MLF, the PBOC conducted MLF operations in the amount of RMB182 billion, with an interest rate of 2.5 percent, unchanged from previous operations.
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 3.45 percent and 3.95 percent, respectively, unchanged from the previous announcement.
On June 25, the PBOC Monetary Policy Committee held its second quarterly meeting of 2024.
On June 28, the PBOC together with the Ministry of Science and Technology, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the National Financial Regulatory Administration, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange unveiled the Work Plan for Boosting the Development of Technology Finance.
On July 9, the PBOC announced that it would support foreign institutions in using Bond Connect bonds for payment of the Swap Connect margin.
On July 15, the PBOC reported to the Commission for Financial and Economic Affairs of the National People's Congress on implementation of monetary policy in the first half of 2024.
On July 15, the PBOC conducted MLF operations in the amount of RMB100 billion, with an interest rate of 2.5 percent; on July 25, it conducted the second MLF operation of the month, with an amount of RMB200 billion at an interest rate of 2.3 percent; and the maturity of the MLF in July amounted to RMB103 billion.
On July 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 3.35 percent and 3.85 percent, respectively, both down 0.1 percentage points from the previous announcement.
On July 22, the PBOC lowered the standing lending facility (SLF) interest rates, among which, the overnight rate was lowered from 2.65 percent to 2.55 percent, the 7-day rate was lowered from 2.8 percent to 2.7 percent, and the 1-month rate was lowered from 3.15 percent to 3.05 percent.
On July 26, the PBOC released the Notice on Strengthening the Supervision and Management of the Interbank Bond Market and Improving the Efficiency of Law Enforcement.
On August 9, the PBOC released the China Monetary Policy Report (Q2 2024).
On August 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 3.35 percent and 3.85 percent, respectively, unchanged from the previous announcement.
On August 26, the PBOC conducted MLF operations in the amount of RMB300 billion, with an interest rate of 2.3 percent. The maturity of the MLF in August amounted to RMB401 billion.
On August 30, the PBOC and the Bank of Mauritius signed a bilateral currency swap agreement with a size of RMB2 billion (MUR13 billion).
On September 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 3.35 percent and 3.85 percent, respectively, unchanged from the previous announcement.
On September 24, the PBOC and the NFRA issued the Notice on Optimizing the Policy on Minimum Down Payment Ratios for Personal Housing Loans, which states that for households that purchase houses with loans, the minimum down payment ratios will be unified to no less than 15 percent, for both first-home buyers and second-home buyers.
On September 24, the PBOC and the NFRA issued the Notice on Extending the Term of Some Real Estate Financial Policies, stating that the applicable period of the relevant policies in the Notice on Effectively Managing Commercial Property Loans and the Notice on Providing Financial Support for the Stable and Healthy Development of the Real Estate Market will be extended from the end of 2024 to the end of 2026.
On September 25, the PBOC Monetary Policy Committee held its third quarterly meeting of 2024.
On September 25, the PBOC conducted MLF operations in the amount of RMB300 billion, with an interest rate of 2.0 percent. The maturity of the MLF in September amounted to RMB591 billion.
On September 27, the PBOC cut the RRR for financial institutions by 0.5 percentage points (excluding those that had already been subject to an RRR of 5 percent).
On September 27, the PBOC lowered the SLF interest rates, among which, the overnight rate was lowered from 2.55 percent to 2.35 percent, the 7-day rate was lowered from 2.7 percent to 2.5 percent, and the 1-month rate was lowered from 3.05 percent to 2.85 percent.
On September 29, the PBOC released the Announcement No. 11 [2024], improving the pricing mechanism for commercial individual housing loan interest rates and promoting the reduction in interest rates on existing home loans.
