China looked set for a soggy start to 2016 after activity in the manufacturing sector contracted for a fifth straight month in December, suggesting the government may have to step up policy support to avert a sharper slowdown. While China's services sector ended 2015 on a strong note, the economy still looked set to grow at its slowest pace in a quarter of a century despite a raft of policy easing steps, including repeated interest rate cuts, in the past year or so. The world's second-largest economy faces persistent risks this year as leaders have pledged to push so-called “supply-side reform” to reduce excess factory capacity and high debt levels.
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China December factory activity shrinks, more stimulus needed in 2016