China Investment


China: Investment remains resilient

August 9, 2011

In the seven months to July, urban fixed-asset investment excluding rural households (FAI) climbed 25.4% over the same period last year, which was below the 25.6% expansion observed in the January-June period, but was broadly in line with market expectations. Despite the strong expansion in the January-July period, the reading represented the slowest increase since January to April period. The moderation in growth was mainly driven by a weaker expansion in the industrial sector as well as in services. According to the seasonally adjusted month-on-month indicator released by the National Bureau of Statistics, investment in urban fixed assets expanded 0.27% in July, which contrasts the 0.63 contraction seen in June.


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