China's NDRC Official Wang says China is to step up regulation on industrial capacity

• Services become key to boosting domestic demand.
• More targeted support policies to be rolled out this year.

The statement from China's NDRC about stepping up regulation on industrial capacity signifies a targeted approach to manage supply and potentially curb excess in certain sectors. This could be interpreted as an effort to refocus on domestic demand, especially in services, while suggesting a more interventionist stance that might influence sectors heavily reliant on industrial output. Market participants should watch for implications on commodities and related equities as these policies unfold.