Steel bars for new housing
Banks are pumping money into any state-controlled company that can take it and those companies are ramping up investment.
The Age.com.au reported that stage one of Premier Wen’s recovery plan — getting the state sector cranking — is on track.
This, and this alone, is enough for the World Bank to hold its 2009 gross domestic product (GDP) forecast to 6.5%. The bank says three-quarters of this year’s growth will come from Government consumption and Government-influenced investment.
Most of China’s 30 major cities showed real estate transactions increasing in February from a very low base, according to a survey by China Real Estate Index System.
The expensive end of the market which was hit hardest, appears to be recovering fastest, with Shanghai sales of top-end properties increasing three-to-five-fold from February to March (depending on the survey).