Recent economic data has begun to show some positive signals. In December, the Consumer Price Index (CPI) increased by 0.2% month-on-month, and the year-on-year growth rate reached 0.8%. More notably, the core CPI excluding food and energy rose by 1.2% year-on-year, indicating that demand is indeed slowly recovering.

The manufacturing side also performed well. The Producer Price Index (PPI) increased by 0.2% month-on-month, although it still declined year-on-year by 1.9%, but this downward trend is slowing. The driving forces behind this come from two aspects—first, the gradual manifestation of the transmission effect of international bulk commodity prices; second, the continued effectiveness of domestic capacity regulation policies.

The key now is to observe the trend in month-on-month data. Both CPI and PPI have shown positive month-on-month growth, and this slow recovery is important for restoring market liquidity expectations.