More on China's priority for the recovery and expansion of domestic consumption

I've been posting on stimulus efforts coming out of China, most recently these:

PBOC wants to boost domestic demand, expand consumption

And, yesterday these:

1. policy support for the economy:

• ICYMI - China's Finance Minister reiterated plans to appropriately expand fiscal spending

2. A potential bounce out of COVID:

• China COVID peak? Nearly a dozen major Chinese cities are reporting recovery in subway use

3. Seasonal demand:

• ING on why demand for yuan in the onshore market should increase

4. More property market support (some sources are reporting this as "China is reportedly mulling measures to shore up "too big to fail" developers"):

• PBOC Guangzhou branch reportedly guides banks to provide offshore financing to developers

Stuck away at the bottom of Caixin services PMI report from today is this:

• “Under pressure from shrinking demand, weakening expectations and a supply shock, the annual Central Economic Work Conference stated that the foundation for an economic recovery is not solid. Policymakers have made it clear that priority must be given to the recovery and expansion of domestic consumption. This requires not only elevated social expectations and confidence in development, but various policies to work in tandem in stabilizing the job market and effectively increasing the disposable income of residents.”

I suspect there will be more policy announcements to come from China as it recovers from the recent COVID-19 surge.

And, as I said earlier:

• The regular monthly prime rate setting is coming up on the 20th of January. Ahead of that will be extra injections of liquidity via open market operations (OMO), and perhaps even a medium-term lending facility (MLF) into Chinese New Year holidays (commencing January 21).