Capital requirements raised in hot sectors

China's State Council raised capital requirements for new projects in four sectors with the aim of cooling down the overheating economy, according to state media reports. China's steel, aluminum, cement and real estate sectors all experienced continued high growth in the first quarter, raising government concerns about production overcapacity. Capital requirements for new steel projects were raised from 25% to 45% and the ratios for the other three sectors were raised from 20% to 35% or more. The raising of capital requirements is intended to force investors in the sectors to utilize less money obtained via bank credit.