China's Economic Contraction and Policy Support

China's manufacturing and services sectors shrank in November, indicating a need for more policy support. The official manufacturing purchasing managers' index fell to 49.4, while the non-manufacturing activity gauge eased to 50.2. The property sector's decline in home sales has impacted demand for various goods, and the rebound in services has slowed down. The government has increased bond sales for infrastructure investment, but concerns about fragile private demand and delayed stimulus persist.