Fixed asset investment growth slows down
(Xinhua)
Updated: 2004-09-15 14:19

While China's fixed assets investment was up 47.8 percent year-on-year during the first quarter, fixed assets investment in August increased only 26.3 percent. The growth rate of total fixed assets investment in the first eight months of this year decreased by 17.5 percentage points from that in the first quarter.

The change was the result of the central government's macroeconomic control policy that was implemented early this year in order to cool down overheated investment in capital construction in some industries.

The Chinese government has cleared 70,600 projects or 17,274.4 billion yuan (US$2,088.8 billion) worth of fixed assets investment since April, according to sources with the SDRC.

Since the end of April, more than 427 projects have been stopped, valued at 43 billion yuan, the sources said.

In this initiative as an important measure of the macro-control policy, 70600 items of fixed asset investment valued 17.2744 trillion yuan were evaluated. 2882 items with a gross investment of 673.9 billion yuan were suspended for rectifying within a certain period. 841 projects totaling 127.2 billion yuan were cancelled. As a result, the number of these projects found irrational came to 4150, or 5.9 percent of the total. They were worth 844.1 billion yuan, or 4.9 percent of the total investment under the scrutiny.

In line with the instruction of the State Council, local governments and departments concerned launched a sweeping investigation into the projects under construction or planned items.

Special attention was given to projects of iron and steel, aluminum, cement, office buildings and training centers for administrative institutions, urban express rail ways, golf courts, exhibition centers, logistics parks, big shopping centers and all items which began to be built in 2004.

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