PBOC Official: Fiscal-Financial Coordination to Cut Service-Sector Financing Costs

The notable signal is the mechanism, not the number: pairing relending with fiscal interest subsidies shifts the cost burden partly onto the budget, which suggests credit policy alone was seen as insufficient for service-sector borrowers. That matters most for small and micro private firms, where local legal-person lenders are the marginal funding channel. Whether the reported decline in new-loan rates extends beyond the first half, and whether subsidy-backed lending reaches firms without bank relationships, is the open question.