China fixed assets investment rises by 25.7%

Despite regulations to curb spending in China, fixed asset investments in the first three quarters of the year grew by 25.7% year-on-year, as announced in a statement released by the central bank on Sunday.

However, the figure represents a 0.2 percentage point drop from the growth experienced in the first half of the year. According to Wu Xiaoling, vice governor of the People's Bank of China, retail sales increased by 15.9% year-on-year, representing a 0.3 percentage point decline from the growth in the previous year.

In a bid to prevent a financial crisis, the Chinese government has been trying discourage overspending by restricting an influx of investments in real estate and various industries. However the efforts were in vain with increasing capital from escalating exports figures.

It was reported recently that China's consumer price index in September was at 6.2%. With rising exports and lower imports, and a widespread of over-investment, the central government is working against the economy from overheating. However, the central bank expects inflation to rise above the government's target of 3%.