Investment Updates News
- Strong asset investment continues
Date: 18-Apr-2007 Sources: (Shenzhen Daily)
THE country's urban fixed asset investment, a key driver for the economy, picked up speed in March, the government said yesterday as an influential State newspaper warned about signs of overheating.
Fixed asset investment in urban areas rose 25.3 percent in the first three months of 2007, the National Development and Reform Commission said in a statement on its Web site.
That compared with a 23.4 percent rise for the first two months of the year, according to government figures published earlier, suggesting that investment picked up during March. For 2006, the figure was 24 percent.
Fixed asset investment, a key indicator of State-funded spending on major infrastructure and production capacity, is being fuelled by huge amounts of liquidity in China's financial system.
It is widely believed that China's economy has picked up pace again so far this year after a slight slowdown in the second half of 2006.
China, which saw 10.7 percent growth in 2006 overall, is due to publish key data for the first quarter in a briefing Thursday, with many expecting the figures to show the economy once more picking up steam.
The data will point to overheating in the country's economy, the official Nanfang Daily reported, citing Geng Qinzeng, an official with the National Bureau of Statistics.
'The people who have studied the figures think that risks of overheating are emerging and that the overheating could be as serious as last year,'he added.
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