Urban investment soars 29.6%

Fixed-asset investment in urban areas grew 29.6% year-on-year in the first four months to US$224.8 billion, the National Bureau of Statistics said in a monthly report. The figures, which are well above the government's 18% projection, increase the likelihood of more belt-tightening measures from the central bank. January-April investment by the central government grew 18.8% year-on-year to US$23.78 billion, while local government investment climbed 31.1% to US$201 billion. Fixed-asset investment growth varied across different sectors – property grew 21.3%; transport 85.7%; coal 58.2%; oil and gas 3.7%; power and heating production and supply sectors 15.6%; and the steel, metal mining and processing industries 13.1%. With a 40% increase in new construction start-ups in the first quarter, the rate is not expected to slow.