A Chinese factory gauge fell to a seven-month low in December, suggesting further stimulus is needed to halt a slowdown in the world's second-largest economy.
The preliminary Purchasing Managers' Index from HSBC Holdings and Markit Economics was at 49.5, below the median estimate of 49.8 in a Bloomberg survey and lower than last month's 50. Numbers below 50 indicate contraction.
The reading suggests a downturn deepened this month even after efforts by the central bank to ease monetary conditions.
These included a cut to benchmark interest rates last month.
Readings of output, new orders, employment and input and output prices all declined, the report showed.