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China capable of controlling growth of fixed assets investment |
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14:49, July 19, 2007 |
The Chinese government is capable of reining in rising fixed assets investment to maintain healthy economic development, said Li Xiaochao, spokesman with the National Bureau of Statistics, on Thursday.
The first half has seen a 25.9-percent growth in fixed assets investment to 5.4168 trillion yuan, despite a slowdown in the growth rate from 29.8 percent in the same period last year.
Li contributed the investment hike to excessive liquidity and surging investment in newly started projects. Official figures show the January-June investment in new projects grew 6.4 percent, compared with 6.1 percent in the first five months of this year.
Low investment cost and low prices of resources products also spurred enterprises to accelerate investment in some sectors, said Li.
The real estate sector saw investment soar 28.5 percent, 4.3 percentage points higher than the same period in 2006 and 1.6 percentage points higher than the first quarter, to 988.7 billion yuan in the first half.
Investors were also lured to invest in sectors with large profit margins such as the iron and steel sector which has seen a price gap of 1,000 yuan between the domestic and global markets.
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