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Fixed-asset investment in China, June 2013

 

In the first six months of 2013, fixed-asset investment accumulatively increased by 20.1% year on year, down 0.3% from the data of last five months. From January to June 2013, national investment in real estate development reached RMB 3.6828 trillion with a nominal growth rate of 20.3% (20.3% in real terms), 0.3% lower than that of last five months. Specifically, investment in dwelling houses increased to RMB 2.5227 trillion by 20.8%, accounting for 68.5% of investment in real estate development; however, the growth rate is 0.8% lower.
 
Growth of investment in manufacturing, real estate and infrastructure all declined slightly. In June, producer price index still stayed in deflation; both domestic and overseas market demands were in downturn. For manufacturing investors, no positive drivers appeared to reverse the declination tendency. For investment in infrastructure, growth of investment in power, heat, gas and water production and supply rose up slightly, while the growth of investment in transportation, warehousing, postal industry, water conservancy facilities and environmental protection and public utility administration, which account for a higher percentage in investment, decreased. It was estimated that the growth of investment in infrastructure would maintain stable in the second half year and there was not a high possibility of upturn.
 

 

 

 

From January to June, totally 514.33 million square meters floor space of commercial buildings are sold with a year-on-year growth of 28.7%. The growth rate was 6.9% lower than that of last five months. Specifically, floor space sold for residence, office and business operation increased by 30.4%, 31.7% and 8.3% respectively. Total sales volume of commercial buildings reached RMB 3.3376 trillion with a growth of 43.2%, 9.6% lower than that of last five months. Concretely speaking, sales volumes of floor space for residence, office and business operation increased by 46.0%, 45.7% and 20.5% respectively.
 
In the single month of June, the year-on-year growth rate of floor space of commercial buildings sold and sales volume were only 10.8% and 17.7%, down 17.5% and 15.7% from May. In spite of gradual rise of month-on-month growth base, sale was still quite weak, which was partially affected by poor liquidity of central bank. In recent period, poor liquidity of banks restricted mortgage loan which indeed affected sales of real estate. It is predicted that the influence will last till August.