MNI Policy:China Sees Strong Investment in Property, Factories

     BEIJING (MNI) - Here are the key points from the National Development and

Reform Commission's "stable" outlook on investment in 2019:

     - Investment in manufacturing and housing may remain "relatively fast

growth." Total fixed-asset investment is expected to be stable, and investment

in high-end manufacturing and modern services will be the main driver. 

     - Infrastructure investment will improve moderately. The number of

infrastructure projects approved in 2018 gained 5.3% y/y. This will underpin a

moderate growth in actual investment this year, as it usually takes a year for

the projects to kick off. Shrinking financing channels faced by local

governments may limit growth.

     - The number of proposed real estate projects in 2018 increased by 32.8%

y/y. This will support a fast growth in property investment in Q1. The number of

new housing starts may fall, the commission said.

     - The number of manufacturing projects approved last year rose by 24% y/y.

Manufacturing investment may be limited in 1H by declining profit growth,

sluggish demand and falling product prices.

     - Investment may be strong in advanced manufacturing, public services and

resource conservancy projects.

--MNI Beijing Bureau; +86 (10) 8532-5998; email: wanxia.lin@marketnews.com

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

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