Technical Analysis

China to step up support for domestic demand but big stimulus splash unlikely – report

The report highlights that China’s policymakers are planning to increase support for domestic demand this year but they are likely to stop short of coming up with a big stimulus injection on direct consumer subsidies – instead keeping their main focus on investment. The sources said that China is expected to stick more closely to its familiar playbook of policies and provide support to key industries as well as splurge on infrastructure.

“There are limited options to stimulate consumption. The possibility of giving cash handouts is small.”

Now that we are trying to recalibrate to the post-pandemic era in China, common prosperity remains the number one goal for Xi and trying to bolster domestic consumption is arguably one of the biggest challenges.

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