"China's Factory Downturn Persists, Prompting Economic Stimulus Speculation"

China's manufacturing activity contracted for the third consecutive month in December, with the PMI falling to 49.0, indicating a deepening factory contraction and a challenging economic recovery. This has led to expectations of additional stimulus measures, including interest rate cuts and reserve requirement ratio reductions by the central bank. The government is also expected to focus on fiscal steps to support growth, as weak domestic and global demand continue to weigh on the economy. Despite these challenges, China's economic growth is projected to meet the official target of around 5% for the year.