The People's Bank of China reduced its one-year pledged supplementary lending (PSL) rate by 25 basis points to 1.5% from 1.75% as part of monetary policy measures announced Tuesday.

The reduction is part of China's push to support the real economy by supporting construction of water infrastructure, new-type power grids, computing power, next-generation communications, urban underground pipelines, and logistics.

The PBOC also increased the quota for its science and technology innovation and technological upgrading relending facility by 200 billion yuan to 1.4 trillion yuan and raised the support ratio to 100% from 60%. It also increased support

for agriculture and small businesses by 500 billion yuan to 4.85 trillion yuan.

The reduction comes as Beijing promised "practical and effective incremental policies" to ensure adherence to economic goals, the State Council said Monday.

China will introduce measures to stabilize the property market while promoting employment and income growth, Beijing's cabinet said.

Eligible first-time home purchasers could receive mortgage subsidies of 1 percentage point per year for up to five years with the loan principal capped at 1 million yuan, according to a joint circular by the Finance Ministry, PBOC, and the National Financial Regulatory Administration released Tuesday.

"This signals that more policy support rollouts are likely to reach both short- and long-term growth targets," ING Chief Economist for Greater China Lynn Song said the same day.

Meanwhile, China's current account registered a surplus of $193.7 billion in the second quarter, higher than the $184.3 billion surplus in the previous quarter, according to data from the State Administration of Foreign Exchange on Tuesday.