City skyline in China

China Investment July 2020

China: Nominal fixed investment declines at the weakest pace in 7-months in January–July

Nominal urban fixed asset investment declined 1.6% in the first seven months of the year (January–June: -3.1% year-on-year). The figure marked the smallest drop since December 2019 and was in line with the result that market analysts had expected.

The improvement was broad-based, with growth in the primary sector accelerating, the decline in the secondary sector softening and the tertiary sector posting a healthy rebound. In terms of ownership, investment in fixed assets of state-owned enterprises accelerated in the January–July period, while investment among private companies continued to decline albeit at a softer pace.

On a monthly basis, rose 4.85% in seasonally-adjusted terms in July, which was below June’s 5.06% expansion.

The January–July reading suggests that investment activities are recovering. In this regard, Yi David Wang, head of China economics at Credit Suisse, adds that:

“FAI growth continues to accelerate in year-on-year space, with real estate and infrastructure already showing growth rates higher than pre-outbreak levels, consistent with policy implications. Yet the recovery remains uneven as manufacturing FAI continues to lag behind in contraction territory, reflecting limitations of recent stimulus and its varying impacts on different sectors due to credit allocation challenges.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest