china's economy

Paying for China's investment-driven growth

China's approach to fixed-asset investment has been to build first and ask questions later. But there's now no avoiding the big question: where will the money come from?
Jiaozhou Bay's bridge to nowhere. Can China afford more such follies

Fixed-asset investment has been a key driver of China’s economic growth and will remain so in 2013, but the government will find it increasingly hard to sustain its ambitious building projects.

Investment in fixed assets will grow by 19% in 2013, according to CLSA, a Hong Kong-based brokerage. Although that is a slowdown from the 22% rise in 2012, it is still a big increase. “Our worry is where the money comes from” said Francis Cheung, head of China and Hong Kong strategy at the firm.

...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222