Fitch Ratings indicates that the People's Bank of China tends to adopt a gradual easing policy rather than a broad-based credit stimulus

Fitch pointed out that the People's Bank of China has recently adopted a gradual easing policy, including a 25 basis point reduction in the relending rate and lowering the minimum down payment ratio for commercial real estate to 30%. This move aims to alleviate financing pressure on small and micro enterprises and specific areas of real estate, but there remains uncertainty about whether it can effectively boost overall credit demand. Fitch forecasts that the total loan growth will slow to 6.5% this year