PBoC announces plan to build a multi-level financial service system to support domestic demand, tech innovation and SMEs

• To continue to support debt risk resolutions for financing platforms, back local government in market oriented reforms and guide financial institutions to provide services based on marker and legal principles.

The PBoC's announcement to develop a multi-level financial service system underscores its commitment to bolster domestic demand and support SMEs through structured reforms. This move is likely to be perceived as a dovish signal tailored towards enhancing growth and managing debt risks, which could influence the trajectory of the CNY and affect investor sentiment in the fixed income space.