China invests $794 bn in infrastructure

September 26, 2012 | Business | Written by

Beijing, Sep 26: Chinese investment in infrastructure projects exceeded five trillion yuan ($794 billion) in the third quarter of the year, according to data from the country’s top economic planner.

Social financing is expected to surge in the fourth quarter, as there is a lag time of three to six months between project approval and the allocation of funds, reported Xinhua.

Earlier this month, the National Development and Reform Commission announced the approval of dozens of infrastructure projects worth more than one trillion yuan, including highways, ports, railways, sewage networks and waste treatment plants.

The actual approval dates for the projects were spread out over the April-August period, the China Securities Journal reported Wednesday.

About 25 to 50 percent of the money needed for the projects will come from local governments. Other sources include bank loans, corporate debts, corporate bonds, inter-company lending and trust lending.

If inflation is checked, new lending will exceed 1.6 trillion yuan in the fourth quarter and surpass eight trillion yuan for the entire year, analysts estimate.

IANS