Fixed Asset Investment Funding Collapses

As was the case with real estate investment, the funding for fixed asset investment was negative to start the year as the private sector growth collapsed.

This first chart tells the story: private fixed asset investment tumbled to 6.9% and it also broke away from total fixed asset investment. Although there has been discussion of stimulus and government support for the economy, it was never as clear as it is now.

Private sector fixed asset investment has not collapsed, it continued at the same decelerating pace from 2015. As the monthly numbers show, growth has averaged below 10% since September 2015:

The slowdown in the northeast was substantial, with private fixed asset investment falling 11.2% yoy. The northeast counts for a small share of total investment and was far outweighed by the 8.6% growth in the eastern provinces. Still, mining and metals industries saw investment fall more than 40% yoy.

Funding has collapsed for all fixed asset investment, with growth tumbling to 0.9% yoy:
The breakdown is as follows: government investment increased 10.9%; domestic loans increased 1.8%; self-raised fundraising fell 3.1%; foreign capital fell 34.2%; other funding increased 15.5%. Self-raised funding accounted for 62% of total investment funds.

NBS: 2016年1-2月全国固定资产投资(不含农户)增长10.2%
NBS: 2016年1-2月民间固定资产投资增长6.9%

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