At present, 31 provinces of China have unveiled data of fixed-asset investment during the first half of 2017, according to National Bureau of Statistics (NBS). Investment growth of 20 provinces is faster than the average level of 8.6 percent.
While overall investment in local places got better, private investment in these places widely recovered. Private investment in 11 regions including Chongqing, Fujian, Tianjin, Shanghai, Guangdong, Jiangxi, Guizhou, Hunan, Hainan, Henan and Heilongjiang moved up by over 10 percent in the first six months of this year.
Analysts thought that faster investment in manufacturing industry was the major reason for recovery in private investment. But data in various places showed that private investment in local places were mainly made in fields like manufacturing, real estate, and hi-tech industries.
Shandong sees the greatest investment amount, Xinjiang enjoys the fastest growth in investment
In terms of absolute value, Shandong and Jiangsu provinces gained the highest fixed-asset investment amount, which was above 2.4 trillion yuan. Investment amount of Henan, Hubei, Sichuan, Guangdong, Zhejiang, Hebei, Anhui, Fujian and Hunan provinces was more than 1 trillion yuan.
Growth rate of fixed-asset investment in Xinjiang, Guizhou and Tibet registered above 20 percent in the January-June period, ranking ahead.
Xinjiang targeted to raise fixed-asset investment by over 50 percent to 1.5 trillion yuan this year. The plan went smooth in terms of the performance in the first half of the year. Its investment reached 453.047 billion yuan in the first half of this year, up by 24.6 percent year on year. The growth rate, the fastest since 2015, was 16 percentage points higher than the average level of the whole country and ranked the first among other places.
Fixed-asset investment in 13 regions such as Yunnan, Guangdong, Shaanxi, Fujian, Hubei, Hainan, Guangxi, Jiangxi, Sichuan, Hunan, Chongqing, Henan, and Anhui, most of which are in central and western China, maintained double-digit growth in the first half of this year.
According to statistics previously released by the NBS, growth rate in western China and central China came at 10.7 percent and 10.1 percent respectively, faster than 9.1 percent of that in east China. However, investment in northeast China still suffered negative growth, which declined by 9.5 percent from a year earlier.
Liaoning and Gansu were the only two provinces which saw negative investment growth. It fell by 31.4 percent in Liaoning and 36.3 percent in Gansu.
Private enterprises showed more intention for capital expenditure
At present, more than 20 provinces have disclosed their private investment data in the first half of 2017. Growth of private investment in most provinces was higher than average level of 7.2 percent in China, according to rough estimation by reporter with Shanghai Securities News.
Chongqing, Fujian, Tianjin, Shanghai, Guangdong, Jiangxi, Guizhou, Hunan, Hainan and Henan saw private investment rise by over 10 percent in the first half of the year.
Growth of private investment in Shaanxi and Qinghai was relatively low, but it turned to recover from the previous negative growth. For example, private investment of Qinghai hiked by 2.2 percent year on year in the first six months, which was the first positive growth since March this year.
“The most important reason for the recovery of private investment was that increasing demands enhanced private enterprises’ intention for capital expenditure,” Zhang Jun, Chinese economist from Morgan Stanley Huaxin Securities Co., Ltd., told the reporter.
Zhang analyzed that a slew of policies boosting private investment were introduced, and implementing these policies, to some extent, promoted the investment. Particularly deleveraging in financial field since early this year drove social capital to invest in the real economy, hence financing of private enterprises was improved. Besides, with the promotion of public-private-partnership projects, more private capitals joined in the projects, which also facilitated growth of private investment.
Private investment in northeast China was sluggish on the whole, statistics released by the NBS previously. It dropped by 12.3 percent in the first half of this year, with decline narrowing by 8.4 percentage points when compared that in January-May period.
Yet private investment in Heilongjiang climbed by 11.8 percent, 4.6 percentage points higher than the average level of the whole country. This also drove GDP of the province to move up to 6.3 percent in the first half of this year, the highest since 2014.
Private investment mostly made in manufacturing and real estate industries
Where did the private investment flow? Statistics showed that manufacturing and real estate industries are still the most popular destination for private investment, and investment in hi-tech industry is also quickening.
According to Shandong Provincial Bureau of Statistics, private investment in Shandong was mainly made in four fields, with 50 percent investment in manufacturing industry, nearly 20 percent in real estate industry, and 10 percent in infrastructure industry. Private investment in high-tech industry grew faster by 13.0 percent, and the year-on-year growth hiked by 6.6 percentage points.
Private investment in real estate, information transmission, software and information technology service industry, and manufacturing industry ranked top three in Beijing in the first half of this year, according to Beijing Municipal Bureau of Statistics.
Private investment in real estate industry in Hainan accounted for over 60 percent of total private investment. Moreover, the province also saw relatively much more private investment in transportation, storage, mail business, water conservation, environment and public facility management industries.
Tang Jianwei, chief macro-analyst with financial research center of Bank of Communications, told the reporter that “recovery in private investment is connected with improvement in export environment. China enjoys positive growth in exports this year, benefiting manufacturing industry, which just plays a dominating role in private investment.”
Data about investment in manufacturing industry in various places also proved this. During January and June of this year, manufacturing investment grew by as high as 67.6 percent in Hainan, and surged by over 20 percent in Fujian and Beijing.
(By Vanessa)
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