Investment Updates News
- China to delay approval of investment deals to cool growth
Date: 19-Sep-2007 Sources: (Shenzhen Daily)
BEIJING -- China will delay approval of some local government investment projects in its fastest growing regions to cool the economy and reduce the risk of overheating.
The government wants to 'control investment growth that is expanding too fast in some regions,'' the National Development and Reform Commission, the nation's top planner, said on its Web site late Monday.
China's spending on factories, equipment and property climbed 26.7 percent in the first eight months of 2007. The government is trying to prevent the pace of growth from fanning inflation without triggering a sudden slowdown that may cost jobs and leave factories idle.
'The government wants to send out a signal to local governments to curb investment from rebounding,'' said Qi Jingmei, a researcher at State Information Center, an affiliate of the NDRC. 'The government is unlikely to crack down on investment plans altogether, especially in poor regions, because economic growth is needed in those areas.''
Of China's provinces, Fujian in the south east posted highest investment growth of 48.7 percent in the first seven months of the year.
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