China's Factory Activity Shows Divergence in January

China's factory activity expanded for a third consecutive month in January, with the Caixin/S&P Global manufacturing PMI at 50.8, indicating growth, while the official manufacturing PMI showed a fourth consecutive monthly contraction at 49.2. The divergence is attributed to differences in survey samplings, with the Caixin survey focusing on more export-oriented and coastal manufacturers. Both surveys noted declining employment and price pressures, with China's manufacturing sector facing challenges amid the need for policy support.