China to See 7% y/y Investment Growth in Nov, Dec: Journal

China's infrastructure investments may grow 7% y/y each month in November and December due to surging fiscal expenditure, the China Securities Journal reported, citing Zhu Jianfang, an economist from CITIC Securities. In the first 10 months, newly issued special-purpose local government bonds totalled 3.5 trillion yuan, a sharp rise from 2.1 trillion yuan a year ago, the newspaper said, citing Ministry of Finance data. In September, the government relaxed its policy and allowed some of the proceeds to be used as working capital for existing infrastructure projects, leading to a jump in such spending, the journal cited Li Qilin, a member of the China Chief Economist Forum, as saying. Such momentum will likely be carried into November and December, the journal said, citing Jin Yi, an analyst from Sealand Securities.