In the first nine months, household deposits surged by 9.39 trillion yuan, while net household loans decreased by 1.03 trillion yuan. Passenger car retail sales plummeted by 21.7%, and new home mortgage loans fell by 22.1%, indicating a continuous contraction of the household balance sheet.
On November 5, Pan Gongsheng, Governor of the People's Bank of China, reported on financial work to the Standing Committee of the National People's Congress: As of the end of September this year, the number of remaining local government financing vehicles nationwide has decreased by 92% compared to the end of March 2023; as of the end of June, the stock of operational financial debt has decreased by 79%. The report also disclosed that the cumulative approval for real estate 'white list' loans has exceeded 8.4 trillion yuan, and that officials have established a liquidity support tool for clearing arrears and held talks with leading enterprises that have defaulted on payments.
On November 2, the Chinese central bank announced that it will launch the Securities, Funds and Insurance companies Swap Facility (SFISF) operation on November 3, with a one-year term that can be extended as appropriate. 31 securities and fund companies have already reported their demand, with application quotas exceeding 100 billion RMB. This marks the third operation following those in October 2024 and January 2025.
On October 21, the People's Bank of China announced an upgrade to the digital yuan infrastructure, launching a new system and intelligent integration service framework that supports preset consumption conditions and time limits.
The Chinese Communist Party's People's Bank of China issued the document "Policy Stance on the RMB Exchange Rate," reiterating that China has neither the need nor the intention to gain a trade advantage through exchange rate depreciation, and will never engage in competitive devaluation.
The Ministry of Finance, the central bank, and the National Financial Regulatory Administration jointly announced that starting October 1, eligible first-home mortgages will receive a fiscal interest subsidy of 1 percentage point per annum.
The Chinese Communist Party (CCP) officially released economic data for September and the third quarter, showing exports hitting a record high in a single month, PPI rising 5% year-on-year, and new aggregate financing of 3.55 trillion yuan, presenting a recovery narrative; however, at the micro level, new household loans stood at zero, and profits of mid- and downstream firms were severely eroded by the scissors gap.
At the Financial Street Forum, Pan Gongsheng announced the adjustment of the policy rate tenor, the establishment of liquidity support tools for non-bank institutions, the push to link large corporations' loans to the overnight repo rate, and the exit from the deposit and lending benchmark rates, turning intraday firefighting facilities from temporary tools into standing tools.
On September 29, the Ministry of Finance, the central bank, and the National Financial Regulatory Administration jointly announced that starting October 1, eligible first-home mortgages will receive fiscal interest subsidies, with an implementation period provisionally set at one year — the first time the central fiscal budget has subsidized individual housing mortgages. The subsidy applies to newly purchased first-home loans for properties with an area of no more than 120 square meters and a total price of no more than 1.5 million yuan, providing an annualized interest subsidy of 1 percentage point on loans of up to 1 million yuan, for a maximum of five years.
On September 29, China's central bank cut the one-year pledged supplementary lending (PSL) rate by 25 basis points to 1.5%, expanded the scope of support to include telecommunications, logistics networks and other fields, and increased the quota for equipment renewal and technology re-lending by 200 billion yuan to 1.4 trillion yuan.
China's central bank announced the issuance of 60 billion RMB in central bank bills in Hong Kong on September 23, aiming to drain offshore RMB liquidity to maintain the RMB exchange rate.
The central bank's Q2 report on loan allocation shows that the outstanding balance of personal housing loans was 36.29 trillion yuan, down 3.8% year on year, as the mortgage balance continued to contract.
The People's Bank of China released the financial data for August. New RMB loans nationwide totaled only 60 billion yuan, far below the market expectation of 404.3 billion yuan, and the year-on-year growth rate plummeted to a historic low of 4.9%. Both household and corporate loans experienced sharp declines, reflecting a frozen willingness for private sector investment and consumption.
China's central bank released August financial data. New renminbi loans nationwide totaled only 59.1 billion yuan, while household loans fell by a net 202.9 billion yuan.
The aggregate financing to the real economy for August announced by the central bank was 1.66 trillion yuan, of which net government bond financing was 1.01 trillion yuan, accounting for 60.8%; renminbi loans to the real economy were only 60 billion yuan, accounting for 3.6%, meaning financing was mainly supported by government borrowing.