Economic Update exposing local

central to tighter liquidity to control, but some local economic growth, still need a lot of money without investment in fixed assets.


Yesterday (July 14), the "Daily Economic News" reporter statistics have been released over the first half economic performance data reveals that many provinces in fixed assets investment in GDP is still a large proportion of which Jiangxi, Yunnan and other provinces Investment rapid growth.


At the same time, this year, many have also launched an investment-led economic stimulus plan, such as Zhejiang Plan proposes that from 2013 to 2017, Zhejiang Province, will focus on promoting the province more than 1000 major projects, promote social fixed assets invest more than 10 trillion yuan.


Local investment grasps difficult to be put


GDP growth in the first half of this year over 12 percent of Yunnan, fixed asset investment grew 28.9 percent, local media analysts said the Yunnan economy as a whole is still underdeveloped stage, which determines the investment and always will be the first of Yunnans economic growth momentum. It is understood that Yunnan has carefully organized and implemented "in 2013 the provinces investment in fixed assets punch trillion plan."


According to another countrys government work report released shows that in 2013, the eastern areas of investment growth target of 20% or less, Xinjiang, Gansu, Guizhou and other provinces in the western targets set more than 30%. China Investment Association predicts that in 2013 Chinas fixed asset investment grew 24% in recent years become a relatively high year forecast.


"2013 is the local change of government after the first year, no one does not attach importance to investment and construction." China Investment Association, Zhang Hanya told the "Daily Economic News" reporter. He said that as long as the local government will have the opportunity to dry your life, try to boost the economy.


In the central and western provinces have accelerated the pace of investment at the same time, the traditional strong economy is also actively make a greater investment in space, their goal is more long-term. This year, Zhejiang launched the "Zhejiang expansion of effective investment," 411 "Action Plan for the construction of major projects (2013 - 2017)." Plan proposes that from 2013 to 2017, Zhejiang Province, will focus on promoting the province more than 1,000 major projects to promote social fixed assets investment more than 10 trillion yuan. Goals Zhejiang Development and Reform Commission show that in 2013 the total investment in fixed assets, Zhejiang annual growth of 15% or more to make sure, and strive to grow by 20%, total social investment volume exceeded 2 trillion yuan. "Fixed asset investment to GDP has a direct effect pulled." Zhuo Yongliang Institute of Zhejiang Development and Reform Commission said that.


Guangdong province, Chinas economy will be the largest investment in infrastructure put in the desk, the first half of this year, Guangdong has just issued a "speeding up the provinces major infrastructure work program (2013 to 2015)" (hereinafter referred to as "work"), said "Twelve Five" after three years in the eastern Northwest Territories transportation infrastructure as the focus, with three to five years, covering the eastern Northwest initially built rapid transit system. In accordance with the work program over the next three years, eight Guangdong will accelerate infrastructure projects, 21 major items of 460 projects with a total investment of about 2.95 trillion yuan. "Twelve Five" after three years to complete investment of about 1.41 trillion yuan, plans to put into operation the project 294.


Analysts pointed out that Guangdong and Zhejiang are 30 years of reform and opening up the biggest benefit of the country, with the influx of cheap labor and coastal export advantage, the private economy to take off. But in the new situation, weak external demand, private capital financing are also facing pressure to maintain a certain growth of its economy from the investment must be to work on it.


Vital financing into local investment


Local economic growth remains dependent on investments, financing problems have been revealed.


Yunnan Province in the second half of the second focus of economic work is to further innovation and investment and financing mechanism, multiple channels to raise funds for construction projects. Economic Research Institute of Yunnan steel segment analysis, Yunnan Province, the financing problems out of the three prescription: innovative investment and financing mechanism, the activation of social capital; make full use of price leverage to attract social capital to participate in transportation, water conservancy and other infrastructure; pay close attention Investment punch trillion implementation of the tasks. Three prescriptions goal is to ensure the realization of the annual 250 billion yuan financing.


Some places to start restart land finance mode. For space-constrained industrial practical difficulties, Futian District, Shenzhen Urban renewal through the first half, total land area of 54 hectares land, promoting urban renewal projects totaling 55, urban renewal investment 4.852 billion yuan, an increase of nearly four-fold.


And the willingness to invest money for a local shortage situation, Xinhua School "2013 China Economic Report" that the current main contradiction facing Chinas macroeconomic aggregate demand is still insufficient, excess aggregate supply is expected in 2013 monetary and credit policy should moderate expansion rather than moderate tightening; total new credit will be more than 9 trillion yuan, an increase of more than 14.5%.


State Research Center researcher Fan Jianjun told the "Daily Economic News" reporter, GDP growth was 7.5% may be managements psychological bottom line. Once the economic growth in the second quarter or the third quarter fell 7.5% or less, the management will react, do not rule out in the third quarter or fourth quarter, management will make certain tight monetary policy fine-tuning.


Xinhua Qiu Xiaohua, chief economist also told reporters that this year, by promoting the construction of new urbanization, road transport and municipal investment growth accelerated investment, infrastructure investment growth will be higher than in the first half.


He also said that the current level of debt in the international practice under the critical point, the per capita GDP within the margin of safety, with the debt expansion space for optimism that China still has about 10 years of government debt expansion.

Analysts pointed out that Chinas future investment, especially local government investment, reliance on debt financing is inevitable, but the key point there are two, one is the debt should be transparent controllable; Second, debt whereabouts, that investment projects are carefully argued, sustainable.