The People's Bank of China the benchmark rate and Reserve-Requirement Ratio (RRR) are the two big gun tools used
But there are other, more targeted, tools. Bloomberg have a good explainer up on the tools. In brief (see the link for more detail):
Reserve-Requirement Ratio (RRR)
- percentage of deposits that banks must set aside as reserves
Benchmark Rates
- PBOC's one-year lending and deposit rates
- The basis upon which commercial banks set deposit rates for savers and lending rates for companies and for mortgages
Open-Market Operations (OMO)
- Most frequently used (I report on these each day M-F)
- Mainly short-term loans to banks
- Depending on the size of the funds added and the amounts that mature, the operations can result in either a net injection or withdrawal of cash from the financial system
- Range from seven days to several years, but it's the 7-, 14- & 28-day contracts that are most commonly used
- Have an immediate effect on the money market, pushing rates one way or the other
- Operations are carried out using what are known as reverse-repurchase agreements, where banks use bonds as collateral to borrow funds from the PBOC and agree to return the money at a future date. The central bank also uses repurchase agreements, which drain cash, as well as bill sales in its OMOs.
Medium-term Lending Facility (MLF)
- three, six and 12 months loans
- loans to banks
Standing Lending Facility (SLF)
- Aimed mainly at small- and medium-sized financial institutions
- Maximum maturity has been kept at one month or below for the past two years
Pledged Supplementary Lending (PSL)
- Used to fund China's three policy banks (tasked with financing government projects) for investment
- "Policy banks": Agriculture Development Bank of China, China Development Bank Corp. and the Export-Import Bank of China
Short-term Liquidity Operations (SLO)
- Maturities of no more than seven days
- Used to address temporary fluctuations in the money market
- Supplanted somewhat by the PBOC daily daily open-market operations
Temporary Liquidity Facility (TLF)
- The newest tool
- Used just once so far (January 20 2017), when the PBOC provided 28-day funds to some major commercial lenders to help ease a cash crunch before the Lunar New Year holidays
Relending, Rediscounting, "window guidance", X-Repos ... see the link for these.