Central bank releases latest monetary policy report

The central bank has released its latest monetary policy report, reaffirming its commitment to maintaining a prudent monetary stance, ensuring ample liquidity, and supporting the high-quality development of the real economy. According to the report, China’s economic performance remains generally stable with improving supply–demand dynamics, although the external environment continues to face uncertainties such as geopolitical tensions, persistent global inflation, and the divergence of monetary policies among major economies. Under these circumstances, monetary policy must strike a delicate balance between stabilizing growth, preventing risks, and controlling inflation.

The report emphasizes that the central bank will continue advancing interest-rate marketization reforms to enhance the efficiency of monetary policy transmission. It also aims to refine the liquidity management framework to improve policy flexibility and forward-looking guidance. In particular, financial institutions will be guided to increase lending to key sectors such as small and micro enterprises, technological innovation, advanced manufacturing, and green development. Furthermore, the central bank plans to optimize structural monetary tools to ensure targeted support flows to weak yet crucial segments of the economy.

Recent economic indicators suggest signs of recovery in consumption, investment, and exports, though the foundations of the rebound remain uneven. Many enterprises continue to face rising operational pressures despite improving financing conditions. The report notes that the financial system remains robust with reasonable liquidity levels, yet calls for strengthened macro-prudential regulation to mitigate risks related to local government debt, the property market, and sector-specific credit risks.

Regarding real estate policy, the central bank reiterated its adherence to the “city-specific policies” approach, supporting rigid and improved housing demand through differentiated credit policies. Experts believe that monetary policy will not make drastic adjustments due to short-term fluctuations in a single sector, but will instead maintain a framework focused on structural optimization and steady progress.

Externally, monetary tightening in major economies such as the U.S. and the EU continues to reshape global liquidity conditions, posing challenges for emerging markets in terms of capital flows and currency stability. The report states that the central bank will strengthen cross-cycle and counter-cycle regulation while using open market operations, MLF, and SLF tools flexibly to maintain the RMB exchange rate within a reasonable and balanced range.

[Original In-Depth Analysis] The most critical signal from this report is the combination of “prudence” and “precision.” Compared with previous cycles, the focus has clearly shifted from broad-based easing toward structural, targeted, and efficiency-driven policies. The main challenge for the current economy lies in uneven demand recovery and diminishing marginal effects of traditional aggregate stimulus. As a result, structural tools, directional credit support, and interest-rate reforms will play an increasingly important role. For investors, a stable interest-rate environment enhances the long-term allocation value of bonds, while equities in policy-supported sectors—such as advanced manufacturing, new energy, and AI-related industries—are poised to attract more capital. Meanwhile, potential global volatility caused by monetary tightening abroad suggests that diversified asset allocation remains essential.

Overall, the central bank’s policy stance signals continuity, stability, and strong structural orientation. Investors should closely monitor policy trends, industrial upgrading opportunities, and the impact of interest-rate movements across asset classes while adjusting their portfolios according to risk tolerance and long-term market dynamics.