China Investment


China: Investment remains strong in May

June 13, 2011

In the first five months of 2011, urban fixed-asset investment excluding rural households (FAI) increased 25.8% over the same period last year, which was above the 25.4% expansion recorded in the four months up to April. The increase surprised the market on the upside, as analysts anticipated a 25.2% rise. Industry investment (+26.3% year-on-year) was the main driver, while investment in services was slightly more subdued (+25.9% yoy). According to the seasonally adjusted month-on-month indicator released for the first time in April by the National Bureau of Statistics, investment in urban fixed assets rose 1.02% in May, which was below the previous month's 1.95% increase.


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