Fixed-asset investment across China declined by 1.7 per cent from January to October, marking a sharper downturn compared to the 0.5 per cent decrease recorded in the first nine months and falling below the 0.71 per cent drop projected by financial data provider Wind. Officials from the National Bureau of Statistics (NBS) pointed to weakening investor confidence and a sluggish real estate market as key contributors to the contraction.
Fu Linghui, an NBS spokesperson, noted during a press briefing that the external landscape remains difficult and domestic competition has intensified, leading businesses and investors to adopt a more cautious stance. He explained that diminishing corporate profits and reduced enthusiasm among private investors have collectively dampened capital inflow.
The property sector alone subtracted 3 percentage points from overall investment growth, underscoring its outsized influence on the broader economy. Given its substantial weight in national investment figures, continued weakness in real estate development has far-reaching implications. Despite these challenges, the official expressed optimism that the country remains on track to meet its annual economic expansion goal.
— news from South China Morning Post
— News Original —
China’s economic growth softens in October as property sector continues to drag investment
National fixed-asset investment fell by 1.7 per cent from January to October, a significant widening of the 0.5 per cent drop recorded in the first nine months and an even steeper decline than the 0.71 per cent decrease forecast by Chinese financial data provider Wind. n nA National Bureau of Statistics (NBS) official partly attributed the fall to cautious investor sentiment and the slowdown in the property market, but expressed confidence that Beijing would achieve its annual growth target. n n“The external environment is complex and challenging, while domestic competition is intense, and with declining investment returns, market participants have become more cautious in making investment decisions,” said Fu Linghui, spokesperson for the bureau, at a press conference for the data release on Friday. n n“With weaker corporate profitability and the reduced appetite of private investors, overall investment growth slowed.” n nHe added that investment in real estate accounted for a 3 percentage point drag on overall investment, since the sector makes up a large share of the total.