China’s fixed asset investment is set to stabilize this year, as mining, middle and high-end manufacturing and other fields are likely to be popular investment targets, according to the country’s top economic regulator.
The National Development and Reform Commission on Feb 26 released a report on the country’s fixed asset investment development trends, saying that investment in middle and high-end manufacturing and the modern service industry will be the primary driver of steady growth in fixed asset investment.
The NDRC said in the report that, buoyed by the government’s strong support, infrastructure investment is likely to recover this year.
However, considering the significant drop in its growth rate in 2018 and shrinking local government financing channels, infrastructure investment might still face pressure and is likely to see moderate growth in 2019, said the report.
The report estimated that mining, middle and high-end manufacturing, accommodation and catering, real estate, scientific research and technology services will be hot investment targets this year.
Statistics from the National Investment Projects Online Approval and Supervision Platform show the number of proposed investment projects surged 15.5 percent year-on-year in 2018.
The infrastructure industry saw moderate growth in 2018, with proposed projects increasing 5.3 percent year-on-year in numbers. And the manufacturing industry experienced a 24 percent increase in the number of proposed projects in 2018.
Lian Ping, chief economist at the Bank of Communications, said infrastructure investment still has growth potential in 2019 and is expected to be a key driving force to boost the investment growth.
A recent report released by the financial research center of the Bank of Communications estimated infrastructure investment will surge by 10 percent year-on-year this year.
“It is clear that the government will focus on increasing infrastructure investment this year to support the country’s overall investment and promote economic stability,” the report noted.
The report forecasted that fixed asset growth will fall slightly in 2019, as property investment and manufacturing investment will witness slower growth this year. It estimated China will see fixed asset investment up 5.8 percent year-on-year in 2019. In 2018, China’s fixed assets went up by 5.9 percent year-on-year.
According to the NDRC, central and western regions will top other regions in China this year in terms of their investment growth rate.
Shaanxi, Gansu, Henan, Hunan and Shanxi provinces in central and western regions will experience a rapid investment growth rate this year, and Fujian and Zhejiang provinces in the east will also see fast investment growth, the NDRC said.