People's Bank of China governor Pan Gongsheng unveiled a wide-ranging easing package, including a 50-basis-point cut to the reserve requirement ratio for major banks and a reduction in the seven-day reverse repo rate.
The announcement, made jointly with the National Financial Regulatory Administration and the China Securities Regulatory Commission, also included measures targeting the property and equity markets directly.
Mortgage rates on existing home loans were lowered to compress the gap with new lending, while a securities, funds, and insurance companies' swap facility was introduced to support stock market liquidity.
The package was the most coordinated easing announcement in years and was followed by additional fiscal signalling from the Politburo at the end of the same week.