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Urban Fixed Asset Investment Up 26.6% in Jan.-Nov. Period
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Fixed asset investment in China's urban areas rose to 7.9312 trillion yuan (about US$1 trillion) in the first 11 months, up 26.6 percent from the same period last year, a report of the National Bureau of Statistics (NBS) said Thursday.

 

This growth rate was 0.2 percentage point slower that in the first ten months of this year.

 

Investment in the real estate, a sector the central government has been desperately trying to rein in, grew 24 percent to 1.64 trillion yuan, according to the report.

 

Investment in projects authorized by the central government increased by 29.6 percent and in local government-approved projects by 26.2 percent over the same period last year.

 

Among the industries, the railway sector saw a 105.1-percent increase year on year; investment in coal mining grew 28.9 percent; and petroleum and natural gas was up 29.1 percent.

 

The sharp rise in fixed asset investment is considered a major factor driving China's economic growth.

 

To prevent the economy overheating, the central government has adopted a series of measures, including tightening money supply to absorb liquidity in the inter-bank market, administrative measures to limit investment in the real estate sector, tighter controls on investment projects and easing management of capital outflows.

 

(Xinhua News Agency December 14, 2006)

 

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