"One-time Credit Repair Policy" deadline; Bank stocks fluctuate higher | Financial Morning Brief

|April 1, 2026, Wednesday|

**NO.1 **The PBOC: Suggest leveraging the integrated effects of incremental policies and stockpile policies to strengthen monetary policy fine-tuning

The first-quarter 2026 meeting of the Monetary Policy Committee of the People’s Bank of China was held on March 26. The meeting studied the main thoughts for the next stage of monetary policy and suggested leveraging the integrated effects of incremental policies and stockpile policies, comprehensively using multiple tools to strengthen monetary policy fine-tuning. Based on China and overseas economic and financial conditions as well as the operation of financial markets, efforts should be made to get the intensity, pace, and timing of policy implementation right.

**NO.2 **Guidelines for exchanging damaged and soiled RMB officially take effect starting March 31

On March 31, the “Measures for the Exchange of Damaged and Soiled Renminbi” issued by the People’s Bank of China officially took effect. The measures for the first time systematically clarify the defining standards for damaged and soiled renminbi, clearly delineate the boundary between exchangeable and non-exchangeable notes, and further refine exchange scenarios. Exchange business is handled free of charge by financial institutions designated by PBOC branches.

Commentary: By clearly defining the standards and the exchange boundaries, it reduces disputes between banks and the public, improves the fairness and predictability of cash services, and also reflects protection of the public’s property rights and interests. With the widespread adoption of digital payments, improving basic cash services helps maintain the legal status of the renminbi and safeguard the lawful rights and interests of various groups—especially seniors and cash users.

**NO.3 **“One-time credit restoration policy” ends on March 31

According to CCTV News, to address the public’s “credit predicament,” support individuals whose credit has been impaired but who actively repay loans, and help rebuild credit and support the sustained rebound and improvement of the economy, the People’s Bank of China introduced the “one-time credit restoration policy” in December 2025. On March 31, this policy expired. Previously, multiple banks had issued frequent reminders, urging borrowers to seize the time to repay.

Commentary: The one-time credit restoration policy is of positive significance for easing individuals’ debt pressure and restoring residents’ balance sheets. For individuals, credit remains an important foundation for future financing and life services; rational borrowing and timely repayment will become the main long-term thread again.

NO.4** Bank stocks surge higher on volatility; Agricultural Bank of China and Bank of China rise more than 3%**

On March 31, bank stocks rose on volatility. As of the time of this release, Agricultural Bank of China and Bank of China were up more than 3%, while China Construction Bank, Postal Savings Bank of China, Industrial and Commercial Bank of China, and others were up about 1%.

Commentary: Overall upward movement in the bank stocks sector helps boost sentiment in the broader market and highlights the financial sector’s “stabilizer” role in the market. Investors should continue to watch for the sustainability of subsequent sector performance, including stabilization of net interest margins, improvement in asset quality, and the effectiveness of policy implementation.

**NO.5 **Yunfeng Financial: Obtained Bermuda insurance license approval with conditions

In its announcement on the Hong Kong Stock Exchange, Yunfeng Financial stated that it recently received a conditional approval granted by the Bermuda Monetary Authority, agreeing that its proposed wholly owned subsidiary be registered as a Bermuda Class E insurance company. Class E insurance companies are approved to conduct long-term insurance business in accordance with the relevant regulations of the BMA (Bermuda Monetary Authority), including life, annuities, accident and disability risk, and so on.

Commentary: Securing a Bermuda insurance license is an important step for Yunfeng Financial’s global expansion and the expansion of its comprehensive financial business footprint. It will help the company carry out cross-border long-term insurance and annuity businesses, serving high-net-worth clients and meeting global asset allocation needs.

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