China's Factory Activity Rebounds, Ends Record Slump in December

• China's official manufacturing PMI rose to 50.1 in December, ending an eight-month contraction streak.
• The recovery defied economists' forecasts and surpassed the 50-mark, indicating expansion.
• Despite factory growth, the broader economy remains fragile with weak investment, consumer spending, and a deteriorating property sector.
• Policymakers show little urgency for new stimulus, with President Xi Jinping prioritizing growth quality over pace.
• Both official and private surveys confirmed the unexpected climb in factory activity.

Why It Matters: China's factory activity unexpectedly expanded in December, but broader economic fragility persists without new stimulus.