China’s property investment to grow less rapidly

China’s property investment to grow less rapidly
21/02/2017 , by , in INTERNATIONAL

China‘s investment in the property sector will likely expand at a slower pace in 2017 as Beijing looks to curb speculation, while infrastrucutre spending is expected to maintain a double-digit growth, state media cited a government adviser as saying.

Li Wei, president of the State Council’s Development Research center, made the comments over the weekend at a seminar, China Economic Daily reported.

Li also said China’s exports would likely resume positive growth this year, as commodity prices stabilize and the impact of an appreciation in the U.S. dollar gets gradually absorbed.

China, the world’s largest trading nation, posted a 7.7 percent decline in exports in 2016, the second annual drop in a row and the worst since the depths of the global crisis in 2009, in the face of persistently weak global demand.

“From mid to long term, the downward channel for Chinese economy has narrowed significantly,” Li was quoted as saying.

Consumer spending, a key driver for the economy, is also expected to extend a double-digit growth this year, Li added.

China’s consumer spending rose 10.4 percent last year, while its infrastructure spending expanded 17.4 percent.

The government should prioritize risk management in the financial sector this year, said Li, echoing the country’s central bank that has said it plans to tighten up its oversight in a range of areas, including corporate debt and bank assets.

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