Provinces' investment outpaces average
Fixed-asset investment growth in the first seven months was at 20.1 percent, according to NBS data.
Investment in eastern regions grew 18.7 percent, while it grew 22.7 percent in western regions in the January to July period, similar to the growth seen in the January to June period. The investment growth in central regions decreased 0.1 percentage point to 23.5 percent in the January to July period.
In terms of absolute size, Jiangsu province registered the largest fixed-asset investment volume, followed by Shandong and Liaoning provinces.
In the second half, investment is expected to accelerate as central and local governments have rolled out a batch of stimulus measures to prop up the slowing economy, analysts said.
On July 31, the State Council - China's cabinet - said the nation would focus on urban infrastructure investment in six categories, including urban rail transit projects, underground pipe networks, and sewage and waste treatment facilities. Other investment plans were previously announced for the redevelopment of shantytowns, as well as railway and environmental protection projects.
Thirty-six cities have seen their urban rail construction projects approved, the National Development and Reform Commission said.
But the investment boom, mostly led by local governments, has also raised concerns.
A recent study by the Shanghai Institute of Finance and Law, found that while infrastructure investment in coastal regions' was appropriate or slightly insufficient, the same investment in western regions was generally excessive compared with their industrial investment. Excessive infrastructure investment was particularly severe in Guizhou and Yunnan provinces.
Huang Shaoqing, a co-author of the study and an associate professor at the Antai College of Economics and Management of Shanghai Jiao Tong University, said the problem with most investment in the western regions is that the fast speed of investment has not been followed by private investment in the industrial sector.
