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Tuesday, July 22, 2014
Total Investment Growth Rate Slowdown Can't Be Changed By Increase of Railway Investment Growth Rate
ANBOUND

In the middle of this year, investment in railway construction is obviously increasing. The market estimates that the growth rate of railway investment will increase in the next half year. ANBOUND research team believes that the central government promotes railway investment in the hope that stable investment can stabilize growth. This will be the key focus of Chinese macro economy in the second half year. However, due to great slowdown of growth rate of investment in real estate development, growth rate of investment in fixed assets in China is slowing down and there is a big investment gap. According to our measurements and calculations, this gap cannot be entirely covered by government investment. Even if the growth rate of railway investment increases in the next half year, it is probably that the situation that the slowdown of investment growth rate won't be changed.

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