Mr Pan held an unusual news conference with officials from two other financial regulators, where he said the central bank would cut the amount of cash banks must hold in reserves, known as the reserve requirement ratio (RRR).
The reserve ratio (RRR) will initially be cut by 0.5 percentage points, which is expected to free up about 1 trillion yuan (US$142 billion, £106 billion) of funds.
Mr Fan added that another cut could come later this year.
Additional measures to stimulate China’s struggling property market include cutting interest rates on existing mortgages and lowering the minimum cash down payment for all types of homes to 15%.
Since 2021, the country’s real estate industry has been suffering from a sharp downturn.
The collapse of several developers left behind a slew of unsold homes and unfinished building projects.
The new stimulus from the People’s Bank of China (PBOC) comes just days after the U.S. Federal Reserve cut interest rates by a larger margin than usual for the first time in four years.
Shares rose on the news, with major indexes in Shanghai and Hong Kong ending trading more than 4% higher.
