Will fixed asset investment growth slow?

• Published 03 Jun 2010

Though there are some signs that central government investment is slowing, westbound investment continues apace along with construction activity on stimulus driven projects.

As Beijing continues to scale back the Rmb 4,000bn ($585.6bn, €478.7bn, £399.4bn) stimulus package and tighten supervision over urban investment corporations (UIC), investors are concerned over the future of fixed asset investment (FAI) growth. Last year (CC Dec 23 2009 Capital Intensive China), we predicted that FAI growth would come in at 25% for 2010, down from 32% last year. The target set by the National Development and Reform Commission (NDRC), which controls approvals for large FAI projects, is 20%.

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