China's monetary authority lowered borrowing costs for policy banks on Sept. 29 to facilitate greater investment in the country's real economy. The People's Bank of China reduced the 1 year Pledged Supplementary Lending (PSL) rate by 0.25 percentage points to 1.5% from 1.75% and extended the tool's eligibility to include six infrastructure categories, such as computing, logistics, and new communication networks.

The PBOC also increased its technology innovation relending quota by 200B yuan to 1.4T yuan and raised the support ratio for those loans to 100% from 60%. Additionally, it added 500B yuan to the relending and rediscount facilities for agriculture and small businesses, raising the total quota to 4.85T yuan, with 300B yuan of that increase earmarked for private enterprises.