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NBS: China Jan-May FAI falls 6.3%, property down 0.3%

The declines in China’s total fixed asset investment (FAI) and the funding in the property market slowed further by May, with the former down 6.3% on year over January-May as against the 10.3% on-year fall in the first four months, and the latter dipping 0.3% as against the 3.3% fall by April, according to the latest data from China’s National Bureau of Statistics (NBS) on June 15.

The continuing narrowing in declines was mainly because that the country’s FAI gained further for the second month, up 5.9% on month in May, according to the NBS data, and in the first five months, China’s FAI added up to Yuan 19.92 trillion ($2.85 trillion), among which, the funding in the domestic property market accounted for 23%.

Up to May, the funding from the country’s non-state-owned investors fell 9.6% on year to Yuan 11.22 trillion, with the drop 3.7 percentage points less than the first four months, and among the economic sectors, that in the industrial sector including light and heavy industries contracted the most by 11.8% on year to Yuan 6.05 trillion, or narrowed 4.2 percentage point from January-April.

As for the investment in the tertiary industry, it totalled Yuan 13.31 trillion up until May, or down 3.9% on year against the 7.8% on-year fall for January-April, among which, the funding in infrastructure construction declined 6.3% on year, which was 5.5 percentage points narrower than that for January-April, according to NBS.

Over January-May, the investment in China’s real estate market totaled Yuan 4.59 trillion, among which, that in the residential housing accounted for Yuan 3.38 trillion, or finally caught up with the pace a year ago after a 2.8% on-year dip until April, according to NBS.

The domestic property market showed signs of improvement in the other key scopes as well, as the new-launched property projects fell 12.8% on year to 695 million sq m over January-May, but it was much better than the 18.4% on-year decline for the first four months, and the new land leases dropped 8.1% on year to 47.5 million sq m over January-May, which was 3.9 percentage points narrower than the drop over January-April.

Besides, the property sales over the first five months declined 12.3% on year to 487 million sq m, which was improved from the 19.3% on-year decline over January to April, and that the sales of residential housing fell 11.8% on year up until May, as against the 18.7% on-year decline for the first four months.

By the end of May, the commercial housing stocks totalled 517.7 million sq m, down 4.83 million sq m on month, mainly as the stocks for residential housing fell 4.36 million sq m on month, according to the NBS data.

Written by Venus Wang, wangyi@mysteel.com

Edited by Hongmei Li, li.hongmei@mysteel.com