China cut the rate on its pledged supplementary lending (PSL) facility by 25 basis points, lowering the one-year rate to 1.5% from 1.75%, while expanding the facility to cover water, power-grid, computing, communications, urban pipeline and logistics networks. The People's Bank of China also increased relending quotas for sci-tech innovation and technological upgrading by 200 billion yuan to 1.4 trillion yuan, for farms and small businesses by 500 billion yuan to 4.85 trillion yuan, and for private enterprises by 300 billion yuan to 1.3 trillion yuan. Separately, China will subsidize interest payments on qualifying new commercial mortgages for first-time homebuyers nationwide from October 1. The annual subsidy will be 1 percentage point for up to five years, capped at 1 million yuan per household, for homes no larger than 120 square metres and costing no more than 1.5 million yuan per household. The steps follow a cabinet pledge to increase counter-cyclical policy support and come as authorities seek to ease economic strains. The central bank said it would maintain ample liquidity and guide interest rates toward levels supporting the real economy.