China
China combines guided deposit-rate ceilings, tight capital controls and state direction of credit, which keep household savings onshore at low yields. Recent moves include record-low deposit rates (2025), a 10 trillion yuan local-debt swap, resumed PBOC bond trading, larger relending quotas and a wider crypto and stablecoin ban, while property curbs and some tax privileges for bonds have been eased.
- 18 in force
- 0 enacted
- 1 proposed or under discussion
Measures as of
How the index is built
Each segment is what one category of rules, or the market pillar, adds to the index. The full bar is 100.
- Captive demand 8.0
- Central bank financing 6.4
- Capital controls 12.4
- Rate caps 9.5
- Prudential sovereign bias 0.0
- Directed credit 6.5
- Tax incentives 1.4
- Real asset restrictions 4.3
- Transaction taxes 1.0
- Market pillar 10.0
Index = 80% × rules (61.9) + 20% × market (50.0) = 59.5
The method in plain words
- Rules pillar (0–100). Each of the 9 categories can add up to its weight (the weights sum to 100). A category's intensity grows with every in-force measure in it: one measure counts by its severity factor (0.25 for severity 1, 0.5 for 2, 0.8 for 3), and each further measure closes part of the remaining gap, so breadth adds with diminishing returns: two severity-3 measures give 96%.
- Market pillar (0–100). The average of the market readings below: how negative the real policy rate is, and how much of the government's debt is held by its own central bank and banks.
- Index. 80% rules + 20% market when market data exists, otherwise rules alone. Laws passed but not yet applying count only in the outlook; proposals never count.
The 9 categories
Weight = the most points a category can add to the rules pillar. Intensity = how much of that weight the in-force measures fill. Open a category to see the measures counted; “What is this?” shows the instruments behind it, worldwide and in history.
- Weight 16Intensity 63%Points 8.0
Mandated holdings of government debt by pension funds, insurers or banks. What is this? →
Captive demand: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 5.7 1 of 3 0.25 2.3 - Weight 16Intensity 50%Points 6.4
Central bank purchases of government debt, yield curve control, direct monetary financing. What is this? →
Central bank financing: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 6.4 - Weight 16Intensity 97%Points 12.4
Limits on moving money abroad, outbound investment limits, FX controls. What is this? →
Capital controls: measures counted in the index Measure counted Severity Factor Points 3 of 3 0.8 5.6 2 of 3 0.5 2.4 2 of 3 0.5 2.4 1 of 3 0.25 1.0 1 of 3 0.25 1.0 - 1 proposed not countedWeight 14Intensity 85%Points 9.5
Caps or ceilings on deposit or lending rates, and administered interest rates. What is this? →
Rate caps: measures counted in the index Measure counted Severity Factor Points 3 of 3 0.8 8.1 1 of 3 0.25 1.4 - Prudential sovereign biasWeight 10Intensity 0%Points 0.0
Prudential rules that favor sovereign debt (zero risk weights, liquidity-buffer rules, leverage-ratio exemptions). No in-force measures here. What is this? →
- Weight 10Intensity 81%Points 6.5
State-directed lending, credit guidance, and mandates to invest domestically or in state priorities. What is this? →
Directed credit: measures counted in the index Measure counted Severity Factor Points 2 of 3 0.5 2.7 2 of 3 0.5 2.7 1 of 3 0.25 1.1 - Weight 7Intensity 25%Points 1.4
Tax privileges for government bonds, or tax penalties on competing assets. What is this? →
Tax incentives: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 1.4 - Weight 6Intensity 89%Points 4.3
Rent controls, property curbs, and limits on owning gold, cash or crypto. What is this? →
Real asset restrictions: measures counted in the index Measure counted Severity Factor Points 3 of 3 0.8 3.1 1 of 3 0.25 0.6 1 of 3 0.25 0.6 - Weight 5Intensity 25%Points 1.0
Financial transaction taxes, stamp duties and similar levies on non-government assets. What is this? →
Transaction taxes: measures counted in the index Measure counted Severity Factor Points 1 of 3 0.25 1.0
Market pillar 50.0 / 100
The average of the readings that have data, worth 20% of the index (10.0 points here).
Real policy rate
0.0 / 1002.2% · Aug 2026
Policy rate minus inflation. A real rate of +2% or more scores 0; −5% or less scores 100; in between it scales in a straight line. Savers lose most when it is deeply negative.
Policy rate 3% minus consumer price inflation 0.8% (year on year), 2026-08.
Debt held by the central bank and domestic banks
100.0 / 10089.6% of government debt · 2025-Q4
Share of government debt held by the domestic central bank and domestic banks. 0% scores 0; 60% or more scores 100; in between it scales in a straight line.
Central bank 2.16% + domestic banks 87.48% of general government debt, 2025-Q4.
Indicators
Measured data from international sources, alongside the rules above. Real rates below zero mean savers lose purchasing power.
Policy rate, inflation and real rate
Who holds government debt
The liquidation effect follows Reinhart and Sbrancia: with a negative real rate, about −(real rate × debt) of GDP moves from savers to the state each year. It uses the policy rate, so treat it as a rough guide. Sources: BIS, BIS central bank policy rates; BIS consumer prices; IMF, IMF DataMapper: World Economic Outlook (October 2026); Fiscal Monitor (October 2026); Menzie D. Chinn and Hiro Ito, The Chinn-Ito Index (KAOPEN): a de jure measure of financial openness; IMF, Sovereign Debt Investor Base for Advanced Economies / for Emerging Markets and Developing Economies (Arslanalp and Tsuda).
Measures
Every measure tracked here, with its legal basis and sources. Only in-force measures count in the index.
In force (18)
Ban on unapproved offshore yuan stablecoins and offshore crypto issuance by mainland firms
Adds 1.0 points to the index
Without approval from the relevant authorities, no one in China or abroad may issue a yuan-linked stablecoin offshore. Mainland entities, and the offshore entities they control, may not issue virtual currencies abroad without approval. The notice says fiat-linked stablecoins in effect take on part of the functions of legal tender.
Why it counts: It keeps yuan payment and savings functions inside the state-controlled banking system and the e-CNY, and blocks an offshore yuan token that could move money around the FX quota and capital controls.
Legal basis PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(1), third paragraph: yuan-linked stablecoins and 1 more
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(1), third paragraph: yuan-linked stablecoinsPrimary source
“未经相关部门依法依规同意，境内外任何单位和个人不得在境外发行挂钩人民币的稳定币。”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 4(13): offshore issuance by mainland entitiesPrimary source
“未经相关部门依法依规同意，境内主体及其控制的境外主体不得在境外发行虚拟货币。”
Ban on onshore asset tokenisation and CSRC filing for offshore tokens backed by mainland assets
Adds 2.4 points to the index
Tokenising real-world assets (turning ownership or income rights into tokens and issuing or trading them) is banned inside mainland China, except for business approved by the competent authority on designated financial infrastructure. Foreign providers may not offer tokenisation services to mainland entities, and banks, payment firms and intermediaries may not serve unapproved projects. Investments in real-world-asset tokens that offend public order and good morals are void in civil law. Offshore tokenisation based on mainland assets or rights needs approval or filing; for asset-backed security tokens, the mainland entity controlling the assets must first file with the CSRC (CSRC Announcement [2026] No. 1, in force 6 February 2026), which can refuse the filing, and some issuers and assets are barred outright.
Why it counts: It stops onshore assets and savings being wrapped into freely tradable tokens that could move across the border outside FX and capital-account controls, and keeps any such issuance under case-by-case state approval.
Legal basis PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(2): onshore RWA tokenisation prohibited unless approved and 3 more
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(2): onshore RWA tokenisation prohibited unless approvedPrimary source
“非法集资等非法金融活动，应予以禁止；经业务主管部门依法依规同意，依托特定金融基础设施开展的相关业务活动除外”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 4(14): offshore RWA business based on mainland rights needs approval or filingPrimary source
“未经相关部门同意、备案等，任何单位和个人不得开展上述业务。”
CSRC Announcement [2026] No. 1: Guideline on Offshore Issuance of Asset-Backed Security Tokens Based on Mainland Assets, Article 4: prior filing with the CSRCPrimary source
“开展相关业务前，实际控制基础资产的境内主体（以下简称境内备案主体）应当向中国证监会备案”
CSRC Announcement [2026] No. 1: Guideline on Offshore Issuance of Asset-Backed Security Tokens Based on Mainland Assets, Article 5: CSRC may refuse filingPrimary source
“备案材料完备且符合规定的，中国证监会履行备案程序，并在办结备案后通过网站公示备案信息；不符合规定的，中国证监会不予备案。”
Sources
- PBOC: Yinfa [2026] No. 42, Sections 1(2), 3(6), 4(14)-(15)
- CSRC Announcement [2026] No. 1: Guideline on offshore issuance of asset-backed security tokens based on mainland assets (copy in MOFCOM policy library)
- Shanghai Municipal Financial Office: PBOC and CSRC officials' Q&A on the 2026 notice (reposted)
- MOFCOM policy library: CSRC Announcement [2026] No. 1 (number, issue and effective date 2026-02-06)
PBOC open-market trading of government bonds
Adds 6.4 points to the index
The PBOC resumed buying government bonds in October 2025 after a pause earlier that year, and says it now runs these operations routinely. Net injections through government bond trading reached 300 billion yuan in the first half of 2026.
Why it counts: Central bank purchases add a large, price-insensitive buyer of government debt and help hold down yields.
Legal basis 中华人民共和国中国人民银行法（2003年修正）, Article 23(5)
中华人民共和国中国人民银行法（2003年修正）, Article 23(5)Primary source
“在公开市场上买卖国债、其他政府债券和金融债券及外汇；”
Tax treatment of government bond interest (VAT exemption narrowed)
Adds 1.4 points to the index
Interest on central and local government bonds has long been exempt from income tax and VAT. From 8 August 2025, VAT applies to interest on newly issued treasury, local government and financial bonds; bonds issued before then (including later reopenings) keep the exemption until maturity, and the exemption for foreign institutional investors was extended to end-2027.
Why it counts: Tax exemptions raise the after-tax yield of government bonds against loans and corporate bonds; the 2025 change trims this edge for new issues.
Legal basis 财政部 税务总局关于国债等债券利息收入增值税政策的公告（2025年第4号）, Paragraphs 1–2 and 5 more
财政部 税务总局关于国债等债券利息收入增值税政策的公告（2025年第4号）, Paragraphs 1–2Primary source
“对在该日期之前已发行的国债、地方政府债券、金融债券（包含在2025年8月8日之后续发行的部分）的利息收入，继续免征增值税直至债券到期。”
财政部 税务总局关于延续实施境外机构投资境内债券市场企业所得税、增值税政策的公告（2026年第5号）, Operative paragraphsPrimary source
“自2026年1月1日起至2027年12月31日止，对境外机构投资境内债券市场取得的债券利息收入暂免征收企业所得税和增值税。”
财政部 税务总局关于延续实施境外机构投资国债和地方政府债券增值税政策的公告（2026年第6号）, Operative paragraphPrimary source
“对境外机构投资我国在境外发行国债、地方政府债券取得的债券利息收入，免征增值税。”
中华人民共和国企业所得税法, Article 26(1)Primary source
“第二十六条 企业的下列收入为免税收入： （一）国债利息收入；”
中华人民共和国个人所得税法, Article 4(2)Primary source
“（二）国债和国家发行的金融债券利息；”
财政部 国家税务总局关于地方政府债券利息免征所得税问题的通知（财税〔2013〕5号）, Paragraphs 1–2Primary source
“一、对企业和个人取得的2012年及以后年度发行的地方政府债券利息收入，免征企业所得税和个人所得税。”
Sources
- KPMG - China: reinstatement of VAT on government and financial bonds
- Bloomberg Tax - China to tax bond interest income after decades of exemption
- China Briefing - China clarifies CIT issues on income from government bonds
- Jiemian - China extends tax exemption on foreign investors' onshore bond interest to 2027
Deposit-rate guidance through the self-discipline mechanism
Adds 8.1 points to the index
Deposit rates are formally liberalized, but banks set them under a PBOC-overseen self-discipline mechanism and official guidance that sets ceilings. In May 2025 the big state banks cut the one-year deposit rate to 0.95%, the first time below 1%, and demand deposits to 0.05%.
Why it counts: Coordinated deposit ceilings keep savers' returns low to protect bank margins and cheapen credit to the state and firms.
No legal instrument: a voluntary or informal arrangement.
State 'national team' stock purchases
Adds 1.1 points to the index
Central Huijin, a sovereign fund unit, said in April 2025 it would act as a quasi-stabilization fund buying ETFs, and the PBOC pledged relending support if needed, alongside other state investors. Reports in early 2026 said it trimmed some holdings to cool the market.
Why it counts: State-directed funds and central bank liquidity are used to steer asset prices, putting policy goals ahead of market pricing for domestic savers.
Legal basis 中国人民银行新闻发言人就支持中央汇金公司稳定资本市场答记者问, Official announcement of liquidity support
中国人民银行新闻发言人就支持中央汇金公司稳定资本市场答记者问, Official announcement of liquidity supportPrimary source
“中国人民银行坚定支持中央汇金公司加大力度增持股票市场指数基金，并在必要时向中央汇金公司提供充足的再贷款支持，坚决维护资本市场平稳运行。”
Guidance for state insurers to put 30% of new premiums into A-shares
Adds 2.7 points to the index
A January 2025 multi-agency plan steers large state-owned insurers to raise their A-share investment and puts state insurers on performance reviews of at least three years. Regulators said the aim is for large state insurers to invest 30% of new annual premiums in A-shares from 2025.
Why it counts: Policyholders' savings are directed into domestic equities to meet a policy goal rather than by the insurer's own choice of assets.
Legal basis 关于推动中长期资金入市工作的实施方案（official issuance announcement）, First measure: commercial insurance investment and performance assessment
关于推动中长期资金入市工作的实施方案（official issuance announcement）, First measure: commercial insurance investment and performance assessmentPrimary source
“对国有保险公司经营绩效全面实行三年以上的长周期考核，净资产收益率当年度考核权重不高于30%，三年到五年周期指标权重不低于60%。”
Banks must flag crypto-linked cross-border transactions and may cut off clients' FX access
Adds 1.0 points to the index
Under SAFE measures (Huifa [2024] No. 32), published and in force from 27 December 2024, banks must monitor and report to SAFE, within 5 working days of confirming them, foreign-exchange 'risk transactions', which expressly include illegal cross-border financial activity involving virtual currencies. Banks must take measures against the client proportionate to the risk, which can include raising its risk rating, enhanced review, refusing or ending FX business, or limiting the amount, number and type of non-face-to-face FX transactions.
Why it counts: It targets the use of crypto (for example buying USDT with yuan and selling it abroad for dollars) to get around the annual FX quota and capital controls, with loss of FX banking access as the penalty.
Legal basis Measures for the Administration of Reporting of Bank Foreign-Exchange Risk Transactions (Trial) (Huifa [2024] No. 32), Article 3: risk transactions include illegal cross-border crypto activity and 2 more
Measures for the Administration of Reporting of Bank Foreign-Exchange Risk Transactions (Trial) (Huifa [2024] No. 32), Article 3: risk transactions include illegal cross-border crypto activityPrimary source
“外汇风险交易行为，是指涉及涉嫌虚假贸易、虚假投融资、地下钱庄、跨境赌博、骗取出口退税、虚拟货币非法跨境金融活动”
Measures for the Administration of Reporting of Bank Foreign-Exchange Risk Transactions (Trial) (Huifa [2024] No. 32), Article 10(4)-(5): measures against the clientPrimary source
“限制与该交易主体建立新的外汇业务关系、拒绝为其办理后续外汇业务，或者终止已经建立的外汇业务关系”
Measures for the Administration of Reporting of Bank Foreign-Exchange Risk Transactions (Trial) (Huifa [2024] No. 32), Press release: number, date and entry into forcePrimary source
“《报告办法》自发布之日起施行。”
10 trillion yuan local hidden-debt swap
Adds 5.7 points to the index
In November 2024 the NPC Standing Committee approved a 6 trillion yuan increase in local special-bond quotas over 2024-2026, plus 4 trillion yuan of existing quota over five years, to swap off-budget local government financing vehicle debt into official bonds. Commercial banks are the main buyers of these bonds.
Why it counts: Higher-yield LGFV loans held by banks are replaced with lower-yield government bonds, shifting the cost of local debt onto bank balance sheets and, through margins, savers.
No legal instrument: a voluntary or informal arrangement.
Caps on interbank and non-bank deposit rates
Adds 1.4 points to the index
In November 2024 the self-discipline mechanism told banks, from 1 December, to price demand deposits from non-bank financial institutions off the 7-day reverse repo rate (the excess-reserve rate for financial-infrastructure institutions). Banks must now keep the weighted rate on these deposits at no more than about 1.4%.
Why it counts: Capping what banks pay asset managers and other institutions holds down returns on cash held through funds and wealth products.
No legal instrument: a voluntary or informal arrangement.
PBOC relending quotas for priority sectors
Adds 2.7 points to the index
The PBOC provides cheap relending to banks tied to loans for state priorities. In September 2026 it raised the sci-tech relending quota to 1.4 trillion yuan, added 500 billion yuan for agriculture and small firms, and lifted the private-enterprise facility to 1.3 trillion yuan.
Why it counts: Central bank funding steers bank credit toward sectors the state picks, at rates set by policy rather than by savers' returns.
Legal basis 中国人民银行调整完善若干货币政策工具, Third and fourth decisions
中国人民银行调整完善若干货币政策工具, Third and fourth decisionsPrimary source
“四是增加支农支小再贷款额度5000亿元，其中民营企业再贷款额度增加3000亿元。”
Stamp duty on stock sales
Adds 1.0 points to the index
Sellers of A-shares pay stamp duty on each trade. The rate was halved from 0.1% to 0.05% from 28 August 2023, and the cut also covers northbound Stock Connect trades.
Why it counts: A tax on equity trades, which government bonds do not bear, lowers net returns on stocks relative to bonds and deposits.
Legal basis 中华人民共和国印花税法, Articles 3–5; attached tax-rate schedule and 1 more
中华人民共和国印花税法, Articles 3–5; attached tax-rate schedulePrimary source
“证券交易印花税对证券交易的出让方征收，不对受让方征收。”
财政部 税务总局关于减半征收证券交易印花税的公告（2023年第39号）Primary source
“为活跃资本市场、提振投资者信心，自2023年8月28日起，证券交易印花税实施减半征收。”
Ban on crypto trading, exchanges and offshore platforms serving mainland residents
Adds 3.1 points to the index
All crypto business in mainland China is illegal: fiat-to-crypto and crypto-to-crypto exchange, acting as central counterparty in crypto trades, information and pricing services, token offerings and trading of crypto financial products. Foreign providers may not serve mainland entities, and banks and payment firms may not open accounts, move funds or clear payments for crypto business. Investments in crypto that offend public order and good morals are void in civil law and losses fall on the investor. Holding crypto is not itself expressly prohibited. The comprehensive ban dates from the ten-agency notice of 15 September 2021; the current basis is the eight-agency notice of 6 February 2026, which repealed and replaced it.
Why it counts: Savers cannot legally buy bitcoin or stablecoins through any onshore or foreign exchange, and the payment rails are closed to it. This removes crypto as a route out of low-yield yuan deposits and around the FX quota.
Legal basis 关于进一步防范和处置虚拟货币等相关风险的通知（银发〔2026〕42号）, I(1)–(2); IV(13)–(15); VI(18)–(19) and 7 more
关于进一步防范和处置虚拟货币等相关风险的通知（银发〔2026〕42号）, I(1)–(2); IV(13)–(15); VI(18)–(19)Primary source
“未经相关部门依法依规同意，境内外任何单位和个人不得在境外发行挂钩人民币的稳定币。”
关于境内资产境外发行资产支持证券代币的监管指引, Paragraphs II–IVPrimary source
“不得损害国家利益和社会公共利益。”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(1): crypto business activities (exchange, token offerings, crypto financial products) are illegal financial activities and strictly prohibitedPrimary source
“虚拟货币相关业务活动属于非法金融活动。在境内开展法定货币与虚拟货币兑换业务、虚拟货币之间的兑换业务”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(1): such activities strictly prohibitedPrimary source
“非法集资等非法金融活动，一律严格禁止，坚决依法取缔。”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 1(1): offshore providers barred from serving mainland entitiesPrimary source
“境外单位和个人不得以任何形式非法向境内主体提供虚拟货币相关服务。”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 3(6): banks and non-bank payment institutionsPrimary source
“金融机构（含非银行支付机构）不得为虚拟货币相关业务活动提供账户开立、资金划转和清算结算等服务”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 6(19): civil acts investing in crypto voidPrimary source
“投资虚拟货币、现实世界资产代币及相关金融产品，违背公序良俗的，相关民事法律行为无效”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Final clause: effective on publication; Yinfa [2021] No. 237 repealedPrimary source
“《关于进一步防范和处置虚拟货币交易炒作风险的通知》（银发〔2021〕237号）同时废止。”
Sources
- PYMNTS - China extends crypto ban to stablecoins and tokenized assets
- DealStreetAsia - China bans offshore issuance of yuan-pegged stablecoins
- PBOC: Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), 6 Feb 2026
- PBOC: Notice on Further Preventing and Handling Virtual-Currency Trading Speculation Risks (Yinfa [2021] No. 237), repealed 2026
- gov.cn policy library: Yinfa [2021] No. 237 (dated 15 Sep 2021)
- PBOC: Notice on Preventing Bitcoin Risks (Yinfa [2013] No. 289) (scanned PDF attachment)
Crypto mining ban (eliminated industry)
Adds 0.6 points to the index
An eleven-agency NDRC notice of September 2021 bans new crypto-mining projects, orders existing ones phased out, bars grid connections and financial or tax support for miners, and applies a surcharge of 0.30 yuan per kWh to mining power use. Mining is listed as an 'eliminated' industry in the 2024 Industrial Structure Adjustment Catalogue, and the February 2026 notice tells provinces to shut remaining mining and bars mining-rig makers from selling in China.
Why it counts: Officially an energy-saving and carbon measure, it also closes the onshore route to acquiring crypto without an exchange: mining projects lose power, finance and tax support, so domestic savings and power cannot readily be turned into crypto.
Legal basis Notice on Rectifying Virtual-Currency 'Mining' Activities (Fagai Yunxing [2021] No. 1283), Section 2(2): ban new projects, phase out existing ones and 5 more
Notice on Rectifying Virtual-Currency 'Mining' Activities (Fagai Yunxing [2021] No. 1283), Section 2(2): ban new projects, phase out existing onesPrimary source
“严禁投资建设增量项目，禁止以任何名义发展虚拟货币“挖矿”项目；加快有序退出存量项目”
Notice on Rectifying Virtual-Currency 'Mining' Activities (Fagai Yunxing [2021] No. 1283), Section 5(13): punitive electricity surchargePrimary source
“执行“淘汰类”企业电价，加价标准为每千瓦时0.30元，地方可根据实际情况进一步提高加价标准”
Notice on Rectifying Virtual-Currency 'Mining' Activities (Fagai Yunxing [2021] No. 1283), Section 5(16): no financial services to minersPrimary source
“禁止各金融机构、非银行支付机构直接或间接为虚拟货币“挖矿”企业和项目提供金融服务和各种形式的授信支持”
Industrial Structure Adjustment Guidance Catalogue (2024 edition), Category III (eliminated), Part 1 (outdated processes and equipment), (19) Other, item 6Primary source
“6．虚拟货币“挖矿”活动”
Industrial Structure Adjustment Guidance Catalogue (2024 edition), Category III (eliminated), preamblePrimary source
“对淘汰类项目，禁止投资。各金融机构应停止各种形式的授信支持，并采取措施收回已发放的贷款”
PBOC, NDRC, MIIT, MPS, SAMR, NFRA, CSRC and SAFE Notice on Further Preventing and Handling Risks Related to Virtual Currencies, etc. (Yinfa [2026] No. 42), Section 3(9): continued rectification of miningPrimary source
“关停存量虚拟货币“挖矿”项目，严禁新增“挖矿”项目，严禁“矿机”生产企业在境内提供“矿机”销售”
e-CNY wallet tiers with balance and transaction caps; interest tied to deposit-rate self-discipline
Adds 2.3 points to the index
The PBOC's July 2021 e-CNY white paper describes digital-yuan wallets tiered by identity verification, each with its own per-transaction, daily and balance limits set by the operating institutions; the default wallet is anonymous and has the lowest limits. The PBOC says the tiering and caps exist to steer e-CNY to retail payments and limit the crowding-out of bank deposits; at the time e-CNY paid no interest. According to a Xinhua report of 29 December 2025 on a PBOC action plan, from 1 January 2026 e-CNY in bank wallets is a bank liability: banks pay interest on real-name wallet balances under the deposit-rate pricing self-discipline agreements, and the balances count toward the reserve-requirement base. No official page found gives the current tier amounts.
Why it counts: The state's own digital money is designed not to compete with bank deposits: anonymous holdings are capped, and since 2026 the interest on real-name wallets follows the same deposit-rate self-discipline pricing as bank deposits, so it offers no escape from low deposit rates.
Legal basis Progress of Research and Development of E-CNY in China (white paper), Section 3: wallets classified by KYC strength with transaction and balance limits and 2 more
Progress of Research and Development of E-CNY in China (white paper), Section 3: wallets classified by KYC strength with transaction and balance limitsPrimary source
“根据实名强弱程度赋予各类钱包不同的单笔、单日交易及余额限额。最低权限钱包不要求提供身份信息”
Progress of Research and Development of E-CNY in China (white paper), Section 4: purpose of caps (limit crowding-out of deposits)Primary source
“降低对存款的挤出效应，避免套利和压力环境下的顺周期效应，提出数字人民币钱包分级分类设计，分别设置交易金额和钱包余额上限”
PBOC Action Plan on Further Strengthening the e-CNY Management and Service System and Related Financial Infrastructure (as reported on gov.cn), Interest on real-name wallets subject to deposit-rate self-disciplinePrimary source
“银行机构为客户实名数字人民币钱包余额计付利息，遵守存款利率定价自律约定。”
Home purchase restrictions in first-tier cities (being eased)
Adds 0.6 points to the index
Beijing, Shanghai and Shenzhen still limit how many homes residents and non-locals may buy, though they loosened rules in 2026: Shanghai in February, Shenzhen in April and Beijing in August. Guangzhou scrapped all home-purchase limits from 30 September 2024, and more than 20 other cities have lifted curbs entirely.
Why it counts: Limits on buying property restrict one of the few large onshore alternatives to bank deposits.
Legal basis 北京市住房和城乡建设委员会等部门关于进一步优化调整本市房地产政策的通知（京建发〔2026〕400号）, I and 3 more
北京市住房和城乡建设委员会等部门关于进一步优化调整本市房地产政策的通知（京建发〔2026〕400号）, IPrimary source
“非本市户籍居民家庭购买五环内商品住房的，在本市缴纳社会保险或个人所得税的年限，调整为购房之日前连续缴纳满1年及以上。”
关于进一步优化调整本市房地产政策的通知（沪建房管联〔2026〕75号）, I(1)–(3)Primary source
“对持《上海市居住证》满5年及以上的非本市户籍居民家庭或成年单身人士，在本市限购1套住房。”
深圳市住房和建设局关于进一步优化调整本市房地产相关政策的通知（深建字〔2026〕86号）, I(1)–(2)Primary source
“持有有效深圳经济特区居住证的非本市户籍居民家庭，可在福田区、南山区和宝安区新安街道范围内购买1套商品住房，以满足其在深住房需求。”
广州市人民政府办公厅关于调整我市房地产市场平稳健康发展措施的通知（穗府办函〔2024〕65号）, Operative paragraphsPrimary source
“经广州市人民政府同意，取消居民家庭在本市购买住房的各项限购政策。”
$50,000 annual FX purchase quota for individuals
Adds 5.6 points to the index
Individuals may buy up to the equivalent of $50,000 of foreign currency a year with just their ID under SAFE rules; larger current-account purchases need supporting documents. Since 2017 buyers must declare the purpose, and the allowance may not be used for overseas property, securities or investment-type insurance.
Why it counts: Household savings are largely trapped onshore, so they flow to low-yield bank deposits, domestic property and government-influenced assets.
Legal basis 国家外汇管理局关于印发《个人外汇管理办法实施细则》的通知（汇发〔2007〕1号）, Article 2; Article 12 and 1 more
国家外汇管理局关于印发《个人外汇管理办法实施细则》的通知（汇发〔2007〕1号）, Article 2; Article 12Primary source
“对个人结汇和境内个人购汇实行年度总额管理。年度总额分别为每人每年等值5万美元。”
个人购汇申请书（柜面版）, Section II, item 5Primary source
“不得用于境外买房、证券投资、购买人寿保险和投资性返还分红类保险等尚未开放的资本项目；”
QDII quotas on outbound portfolio investment
Adds 2.4 points to the index
Domestic investors can buy foreign securities through funds and institutions only within quotas granted by SAFE. Quotas were expanded in 2026, reaching about $176 billion by mid-year, with a further batch in August.
Why it counts: Rationed access to foreign assets limits savers' ability to seek higher returns abroad and keeps capital in domestic markets.
Legal basis 合格境内机构投资者境外证券投资外汇管理规定（国家外汇管理局公告2013年第1号）, Articles 3–6
合格境内机构投资者境外证券投资外汇管理规定（国家外汇管理局公告2013年第1号）, Articles 3–6Primary source
“合格投资者申请投资额度，应向国家外汇管理局提交 以下材料：”
Under discussion (1)
Tighter curbs on non-bank demand deposit pricing
Not counted in the index
In March 2026 Caixin reported that the banking industry may tighten self-regulatory controls on demand deposits from non-bank financial institutions after banks found ways around existing caps.
Why it counts: Closing loopholes would further limit the yield that money funds and wealth products, and so their retail investors, can earn on cash.
No legal instrument: a voluntary or informal arrangement.
Before today
9 examples from China in the toolkit, past and present, grouped by what the tool does. Each links to the instrument, its other examples and the cited law.
HoldHold the price of money down
Rate caps
Deposit-rate ceilingsPeople's Bank of China benchmark-rate and deposit floating-band decision effective 1 March 2015
2015HistoricalRate caps
Officially supported deposit-rate agreementsInterest Rate Self-regulatory Mechanism; PBC-guided ceiling reform of June 2021
2015 → nowIn forceRate caps
Window guidance and supervisory pressure on bank pricing and lendingWindow guidance on inclusive SMB loan pricing, described at the State Council Information Office policy briefing of 25 April 2019
2019Historical
BlockBlock the exits
Capital controls
Quotas on residents' foreign-currency purchases and outward remittances国家外汇管理局《个人外汇管理办法实施细则》(汇发〔2007〕1号), 第二条 (USD 50,000 annual quota per person)
2007 → nowIn forceReal asset restrictions
Household property ownership quotas and eligibility testsBeijing housing notice Jing Jian Fa [2011] 65, implementing Guo Ban Fa [2011] 1 and Jing Zheng Ban Fa [2011] 8
2011 → nowIn forceReal asset restrictions
Restrictions on financing foreign real-estate purchasesRegulations of the People's Republic of China on Foreign Exchange Administration; SAFE enforcement circular of 18 September 2015
2014 → 2015HistoricalCapital controls
Mandatory limits and approval regimes for outward investment国办发〔2017〕74号, 关于进一步引导和规范境外投资方向的指导意见, 第四部分 (restricted outward investment)
2017 → nowIn forceReal asset restrictions
Bans on cryptocurrency trading and exchange businessesPBOC and nine other departments, Notice on Further Preventing and Resolving the Risks of Virtual Currency Trading and Speculation (2021), reaffirmed at the November 2025 coordination-mechanism meeting
2021 → nowIn forceReal asset restrictions
Exclusion of crypto users and exchanges from bankingNotice on Guarding Against the Bitcoin Risks; Announcement on Preventing Financing Risks Related to Token Offerings; PBOC regulatory meeting June 2021
2021Historical
Further reading
- Interest-Rate Liberalization and Capital Misallocations
Liu, Wang, Xu · Federal Reserve Bank of San Francisco, 2020
Shows that removing interest-rate restrictions can improve allocation within Chinese state-owned and private sectors while worsening allocation between them. In the calibrated model, liberalization can reduce welfare unless reforms also address state-owned firms’ advantages and private firms’ credit constraints.
- Tracking Global Demand for Emerging Market Sovereign Debt
Arslanalp, Tsuda · IMF, 2014
Extends sovereign investor-base measurement to emerging markets, separating domestic banks, nonbanks and central banks from foreign holders. It documents post-crisis foreign inflows and country differences in banks’ government-debt exposure, useful for evaluating funding dependence and potential captive demand.
- Interest Rate Liberalization in China
Feyzioglu, Porter, Takáts · IMF, 2009
Identifies the deposit-rate ceiling as China’s most binding interest-rate restriction and models its removal. Liberalization can improve credit allocation and monetary transmission, but successful implementation also requires stronger supervision and governance.