EghtesadOnline: China’s official factory gauge stabilized near a post-2012 high in December, capping a year of steady improvement and signaling policy makers have leeway to curb financial risks while keeping growth humming. The services gauge remained elevated. Input prices jumped.

EghtesadOnline: China’s financial system is becoming significantly more vulnerable due to high leverage, according to central bank governor Zhou Xiaochuan, who has made a series of blunt warnings in recent weeks about debt levels in the world’s second-largest economy.

EghtesadOnline: China’s official factory gauge rebounded, suggesting the economy may remain robust enough to offer policy makers more room to continue curbing financial risks.