BY AARON BACK

BEIJING—Chinese manufacturing activity contracted again in December, though at a more moderate pace than in the previous month, HSBC's gauge showed on Friday.

The final HSBC China Manufacturing Purchasing Managers Index rose to 48.7 in December compared with 47.7 in November, HSBC Holdings PLC said.

Despite the slight rise, the index remains in contractionary territory, adding to evidence that growth continues to slow in the world's second-largest economy.

A reading below 50 indicates ...