Investment in China’s real estate, factories, and utilities unexpectedly accelerated in May, adding to pressure on the government to curb bank lending.
Fixed-asset investment in towns and cities climbed 30.3 percent to 2.54 trillion yuan ($318 billion) through May, the Beijing-based National Bureau of Statistics said today. The increase compares with a 29.6 percent gain in the first four months and 26.4 percent in the same period last year.
Premier Wen Jiabao yesterday told local governments and banks to limit lending to stop a spending binge that the World Bank says could cause the world’s fastest-growing major economy to slow abruptly. The central bank , which raised lending rates in April for the first time in 19 months, today announced plans to step up operations to drain funds from the financial system.