ACCOUNT PROFILE

China’s Jan-Aug FAI up 8.9%, property up 10.9%

Posted on 16 September 2021

Over January-August, China’s fixed asset investment (FAI) grew 8.9% on year to about Yuan 34.7 trillion ($5.4 trillion), among the total, the funding in the property market increased 10.9% on year to Yuan 9.8 trillion, both posting slower growths than those over January-July, Mysteel Global noted from the data released by the country’s National Bureau of Statistics (NBS) on September 15.

 

Over January-August, the growth in FAI was slower than 10.3% on-year growth over January-July, but it was up 8.2% than two years ago, and among the total, the funding from the privately-owned enterprises remained the dominant contributor with Yuan 19.85 trillion, accounting for 57.2% of the total or up 11.5% on year, according to the NBS data.

Over January-August, the country’s tertiary industry attracted the most funding among three industrial sectors, totaling Yuan 23.3 trillion or up 6.8% on year, and among the total, that in the infrastructure edged up 2.9% on year but 1.7 percentage points short of the growth over January-July, the data showed.

In the first eight months, the funding in the property also slowed down in growth against the 12.7% on-year rise over January-July, and among the total that in the residential housing projects approximated Yuan 7.4 trillion, or up 13% on year or remaining the dominant, according to the NBS data.

Over January-August, China’s property sales exceeded 1.14 billion sq m, up 15.9% on year and up 12.1% than two years ago, among which residential housing sales grew the fastest at 16.5% on year, and among the Chinese regions, East China - the most developed area - shouldered the most property sales with 479.5 million sq m, or up 18.1% on year, according to the official data.

By the end of August, inventories in China’s property market totalled 505.8 million sq m, or down another 2.84 million sq m on month, and over January-August, China’s newly-launched property projects declined 3.2% on year to about 1.36 billion sq m with residential housing down 1.7% on year to about 1 billion sq m, according to the official data.

In the first eight months of 2021, land lease to the property developers declined at a faster pace of 10.2% on year against a 9.3% on-year fall over January-July, totaling 107.3 million sq m, and by the end of August, China’s property market sentiment appeared less optimistic though still in a positive tone, as the index was assessed at 100.85, as against 100.98 for July, the data showed.

Source : Mysteel Global