The central bank: Guide local corporate financial institutions to increase lending to private enterprises in a market-oriented manner.

The People's Bank of China released the 2026 Second Quarter Report on the Implementation of China's Monetary Policy. It noted that, currently, there remains a structural imbalance in financing for private enterprises. Large private enterprises have relatively strong financing capabilities, and there are numerous financing support policies for small and micro private enterprises. However, medium-sized private enterprises, which are the backbone of the private economy, are in a "sandwich layer" regarding financing conditions. They lack the diversified financing channels available to large enterprises and cannot enjoy the policy support that small and micro enterprises receive, making their financing challenges particularly pronounced. In the next steps, the People's Bank of China will continue to leverage the incentive effect of relending to private enterprises and guide local financial institutions to increase credit availability to private enterprises through market-oriented means, enhancing the accessibility of financing for small and micro private enterprises.