China's Monetary Policy Tools Valued at CNY 7T

China's outstanding structural monetary policy tools totaled 7.018 trillion yuan ($959 billion) at the end of September, according to the central bank, up 2% from 6.78 trillion yuan at the end of June. The People's Bank of China (PBOC) has expanded its basket of structural policy tools, including lending and rediscount facilities, as well as other low-cost loans, but analysts say it is now limited in how much it can ease monetary policy due to concerns about stoking capital flight and harming the yuan.

To help the economy recover after a brief COVID rebound, the PBOC reduced the amount of cash that banks must hold as reserves for the second time this year in September, boosting liquidity.

Thanks to a slew of policy support, the world's second-largest economy grew faster than expected in the third quarter, raising the prospect that Beijing will meet its 5% growth target this year.

On Tuesday, China's top legislative body approved 1 trillion yuan in sovereign bond issuance, which officials said will help the economy recover, as policymakers continue to face multiple headwinds, including persistent drag from the property sector.