BANGKOK (AP) — Chinese factory activity expanded for the first time in eight months in December, as orders picked up ahead of holidays and builders rushed to finish projects, according to surveys released Wednesday. The official purchasing managers index for manufacturing, a monthly survey of companies, rose to 50.1 this month, the National Bureau of Statistics reported. That was just above the 50 cut off for expansion versus contraction on a scale up to 100. Another, private sector, survey also was at 50 ...

Investment Rating - The report indicates a more sanguine outlook on growth and US-China trade tensions, suggesting a positive investment sentiment towards the Chinese economy [2][4]. Core Insights - The Politburo has shown increased confidence in China's near-term growth outlook, citing strong performance in major economic indicators [2][3]. - There is a focus on addressing overcapacity and promoting orderly competition among enterprises, with a commitment to optimize market order [3][4]. - The report highlights a shift towards detailed policy implementation, emphasizing proactive fiscal policy and moderately accommodative monetary policy [4][6]. Summary by Sections Economic Outlook - The Politburo's recent meeting reflects a more optimistic view on economic growth, with expectations of continued resilience despite external shocks [2][3]. - The potential extension of the US-China tariff truce indicates a reduction in trade tensions, which may positively impact economic stability [2][3]. Policy Measures - The report notes that the Politburo has committed to implementing existing policies more effectively rather than introducing new measures, signaling a focus on execution [4][6]. - There is a lack of urgency for additional stimulus measures, particularly in the consumer trade-in program, suggesting a cautious approach to fiscal expansion [7]. Local Government Debt - The report emphasizes the need for risk resolution regarding local government financing vehicle (LGFV) debt, with a strict prohibition on new hidden debt [7]. - The RMB10 trillion debt swap program is viewed as insufficient to address the total local government debt of approximately RMB60 trillion [7]. Property and Capital Markets - The Politburo's meeting indicated less urgency for large supportive measures in the property market, focusing instead on urban renovation programs [7]. - The report suggests that the stock market will see reinforced frameworks rather than direct property support measures [7].