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China reports strong investment growth, suggesting government might impose more controls

China reports strong investment growth, suggesting government might impose more controls

China's investments in real estate, factories and other urban fixed assets soared 25.5 percent in the first four months of this year, the government reported Thursday, suggesting Beijing might tighten controls imposed earlier to cool the boom.
The growth rate reported by the National Bureau of Statistics exceeded the full-year figure of 24.5 percent in 2006.
Chinese leaders worry that runaway spending on unneeded factories, luxury apartments and other assets could ignite politically dangerous inflation or a debt crisis if projects fail.
Beijing has raised interest rates repeatedly and imposed curbs on industrial investment in an effort to cool the boom, but authorities say the controls have had only mixed success.
Even with the economy expected to grow by more than 10 percent and exports up 26.8 percent in April, the government says the supply of assets in the textile, auto and other industries exceeds demand.
Economists have forecast at least one interest rate increase this year.
The report on the statistics bureau's Web site gave no monthly figure for investment in April.


Updated : 2021-10-24 17:19 GMT+08:00