Fixed-asset investment continues rising
By Sun Min (China Daily)
Updated: 2006-06-16 09:04
According to the NBS figures, 565.8 billion yuan (US$70.7 billion) was
invested in the real estate sector in the first five months, up 21.8 per cent
from the same period a year ago.
The rosy economy and increasing
consumption of energy also drove up investment in sectors like coal-mining,
power and railway transportation, which grew by 63.9 per cent, 18.4 per cent and
93.8 per cent.
Gao Shanwen, chief economist at Everbright Securities,
said the strong rebound in investment and lending growth this year had
stimulated the economy and the stock market, and had led to a re-evaluation of
asset prices.
Most new investment went into infrastructure construction,
real estate, exploitation of resources, catering and commerce. That might help
improve the profitability of relevant industries, Gao said.
However, as
for whether the central bank would further raise interest rates this year to
cool down the economy, most economists agreed it would have to wait for macro
economic figures in June before taking action.
Insiders said the central
bank had issued more than 100 billion yuan (US$12.5 billion) in central bank
bills to specific commercial banks, following a similar move a month
ago.
This is expected to decrease banks' liquidity and so force them to
reduce lending.
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