29 September 2026 | 10:49PM HKT Economics Research China: Targeted easing follows State Council call, growth impulse may be modest Bottom line: Policymakers announced a combination of targeted fiscal and monetary easing measures on September 29th, following Premier Li's call for stronger counter-cyclical measures to help achieve the full-year growth target. Major measures include a 25bp cut in the PSL rate and an expansion of PSL support to the "Six Networks" projects, higher quotas for various relending pr ...

Assessing the Impact of Structural Monetary and Fiscal Policies on Banks China policymakers announced a combination of targeted fiscal and monetary easing measures on September 29, including a 25bp cut in the PSL (pledged supplementary lending) rate, an expansion of PSL support to the "Six Networks" projects, higher quotas for various relending programs, and the first-ever mortgage interest subsidy for eligible first-home purchases (see GS Macro report). From a banking perspective, we believe this latest ro ...