China has seen a huge leap in the new investment intention amount of its real estate sector according to the latest official data.
Data from the State Council’s “2018 August National Fixed Asset Investment Development Trend Monitoring Report” (2018年8月份全国固定资产投资发展趋势监测报告) indicates that the national new investment intention project investment amount saw year-on-year growth of 4.5% for the period from January to August, for an acceleration of 1.4 percentage points compared to the first seven months of 2018.
August marks the first month to see an acceleration in investor intention amount growth since April, with analysts pointing to the positive impacts of stimulus policies from Beijing amidst escalating Sino-US trade tension.
The State Council report highlights a huge divergence between sectors however, with the new investor intention amount for infrastructure seeing a YoY decline of 34.2% for the first eight months of the year, as compared to a rise of 38.7% for the real estate sector across the same period.
China’s manufacturing sector saw a 13.4% increase in the new investor intention amount for January-August.
New investor intention also saw widely diverging growth based on geographic area, with China’s eastern posting a YoY decline of 14.7% for the first eight months of the year, as compared to a leap of 57.4% for central China, a 12.9% rise for eastern China, and a 28.3% increase for the Chinese northeast.