🟠 China is shifting its thinking from rescuing real estate to revitalizing domestic demand

📌 Beijing is making three notable moves at the same time: easing household registration for migrant workers, lowering funding costs through the MLF, and preparing a 6-network investment package worth over 7 trillion RMB.
📌 Stimulating consumption through household registration policies.
China is expanding access to public services for migrant workers in the cities where they work, including social insurance, healthcare, education, public housing, and other basic services.
-> Stimulating demand through social security. Migrant workers are the force generating urban output, but have long been deprived of full urban benefits. When the costs of education, healthcare are high, and insurance is not linked to temporary residence, saving becomes a priority.
To boost consumption, first, people need to feel less fearful about the future.
📌 PBOC lowered the 1-year MLF rate to a record low of 1.45% and injected about 600 billion RMB in May.
-> Moderately injecting money into selected sectors chosen by the government to avoid inflation.
📌 The 6-network package replaces real estate: electricity, water, computing, telecommunications, underground pipelines, and logistics. All are foundations for an AI economy, data centers, and high-tech manufacturing.