China’s Securities Times cite analysts suggesting the PBoC may increase Pledged Supplementary Lending (PSL).

China’s Pledged Supplementary Lending (PSL) facility was established in 2014. The PSL is a monetary policy tool used by the People’s Bank of China (PBOC) to provide low-cost, long-term funding to policy banks. These banks then support government-prioritized sectors. In the past this has meant affordable housing, urban redevelopment, and major infrastructure projects. This time it appears aimed at supporting the private sector more directly.

PSL injections are considered a form of “quasi-fiscal” stimulus, allowing for targeted economic support without broad-based monetary easing.

I haven’t any further details at this stage.

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