On June 4, 2026, the People’s Bank of China officially launched a new special re-lending policy for inclusive micro and small enterprises, releasing a new 100 billion-level special quota targeting the financing development of individual industrial and commercial households and small and medium-sized enterprises. This structural monetary policy is designed to precisely support the real economy and consolidate the foundation of private economic growth. The new policy introduces multiple favorable measures to reduce the comprehensive financing cost of micro and small entities. It significantly cuts the subsidized interest rate for micro and small enterprise loans and streamlines the credit approval and review process, greatly improving the efficiency of fund placement. Different from universal monetary easing, the policy implements precise directional support, focusing on benefiting small and micro entities in commercial circulation, scientific and technological innovation, green services and people’s livelihood-related industries. To eliminate commercial banks’ concerns over credit risks, the central bank has established a dynamic risk guarantee mechanism for inclusive loans. The mechanism shares partial credit risks for qualified micro and small enterprise loans, effectively motivating financial institutions to increase credit supply for vulnerable market entities. For a long time, financing difficulties and high financing costs have been key bottlenecks restricting the development of small and micro enterprises. The launch of the new re-lending policy delivers targeted financial support, injecting stable capital vitality into grassroots market entities. Economists pointed out that the precise drip irrigation of structural monetary policy will optimize the domestic credit structure, stimulate the operational vitality of private enterprises, stabilize market employment and business confidence, and provide solid financial support for the sustained and steady recovery of China’s macro economy.