What Rebalancing: Private Service Industry Investment Declines 0.1 pc

Fixed asset investment increased 9.6 percent YTD in May, but it only grew 7.4 percent yoy for the single month. Private fixed asset investment increased 3.9 percent YTD and 1.0 percent in May alone.

This slowdown in private financing is evident in the breakdown of funding:

The separate private investment report shows there's no rebalancing of investment: the slowdown is most evident in service sector investment, where growth was only 2.2 percent YTD and actually fell 0.1 percent in May. Meanwhile YTD investment growth in primary industry is 17.9 percent. Investment in auto manufacturing and electrical power generation lifted total private investment growth in May.

I've highlighted the full on collapse in Northeast investment as well, down 29.3 percent YTD. The drop is accelerating, with the single month yoy decline at 35.8 percent in May.

NBS: 2016年1-5月份全国固定资产投资（不含农户）增长9.6%
NBS: 2016年1-5月份民间固定资产投资增长3.9%