PBoC held a meeting on Jan 5-6; continue moderating easing, integrate incremental and stock policy effects; will intensify counter cyclical and cross-cyclical adjustments

• Will make efforts to expand domestic demands.
• Will prudently defuse risks in key areas.
• Will keep liquidity ample.
• Will flexibly use RRR cut and rate cut. 
• Will keep Yuan exchange rate basically stable at a reasonable and balanced level.
• Vows to strengthen market expectation guidance. 
• Will enhance supervision on bond market and gold market. 
• Will boost market confidence. 

The PBoC is signaling a continued commitment to moderate easing while emphasizing the importance of adjusting policy across cycles. The mention of being flexible with RRR and rate cuts suggests a proactive approach to enhancing liquidity and stabilizing the Yuan, which may boost market confidence amid ongoing economic pressures. This could have implications for risk assets and fixed-income markets in the region as investors gauge the effectiveness of these measures.