PBOC monetary policy not US-style QE

China's monetary policy is now weighted more toward loosening, but it is different from US quantitative easing in terms of the scale of liquidity and the monetary policy tools used, economists said.

Unlike the US Federal Reserve, which buys Treasury bonds to boost the economy, China's central bank has been pumping liquidity into the financial market in the past few months by using such monetary policy tools as re-lending, pledged supplementary lending, short-term liquidity operations and standing lending facility.

China Business News reported in July that the People's Bank of China injected 1 trillion yuan ($162 billion) through a three-year pledged supplementary lending facility into the China Development Bank for urban renovation. Several regional banks also have received loans ranging from 500 million yuan to 1 billion yuan from the PBOC at low rates since July, the 21st Century Business Herald reported.