A slowdown in private investment in China in May overshadowed other, more-upbeat economic data, contributing to a 3.2% drop in Shanghai shares and fueling concerns that growth in the second quarter could be weaker than in the first, reports The Wall Street Journal. Several reports released Monday suggested pockets of relative strength in the world’s second-largest economy. But fixed-asset investment expanded by a weaker-than-expected annual clip of 9.6% in the first five months of the year, compared with 10.5% growth through April. Even worse, the private investment portion grew by a mere 3.9% in January-May, down from an already weak 5.2% in January-April.
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