(Yicai) Dec. 15 -- China’s fixed-asset investment fell in the January to November period, despite investment in key areas maintaining steady growth, according to the latest official data.

Fixed-asset investment dropped 2.6 percent to CNY44.4 trillion (USD6.28 trillion) in the 11 months ended Nov. 30 from a year earlier, compared with a 1.7 percent of drop in the first 10 months, the National Bureau of Statistics said today.

Investment in infrastructures and real estate development fell 1.1 percent and 15.9 percent, respectively, in the period, compared with declines of 0.1 percent and 14.7 percent in the 10 months ended Oct. 31. Meanwhile, manufacturing investment rose 1.9 percent, up from 1.1 percent, slowed from 2.7 percent.

The sharp decline in land transfer revenue created pressure on local finances, said Wang Qing, chief macro analyst at Golden Credit Rating International. This, coupled with the strict control of hidden debts, hindered the rebound of infrastructure investment, he explained.

Wang identified three main reasons for the slower growth in manufacturing investment. They are fluctuations in the external environment, which undermined the confidence of private enterprises, the anti-involution policies from July that restricted the expansion of industries with overcapacity, and the high base from last year’s large-scale equipment renewal, which restrained this year’s growth.

Even though overall investment grew slower, investment in key areas expanded, driven by policies to sustain domestic demand and the upgrading and development of industries, which continued to lay a foundation for the medium- and long-term development of the economy, said Fu Linghui, spokesperson for the NBS.

Investment in equipment manufacturing surged 8.9 percent in the first 11 months from a year earlier, while that in the automotive industry climbed over 15 percent. Investment in railway, shipbuilding, aerospace, and other transportation equipment manufacturing soared 22 percent.

The policy effect of large-scale equipment renewal continued to be released. Investments to purchase equipment and tools increased more than 12 percent in the period, driving the total investment up by 1.8 percentage points.

China’s investment potential and space remain huge, according to Fu. Competent government agencies have recently introduced policies to promote investment growth, with a particular focus on enhancing investment efficiency and stimulating the vitality of private investment, he noted, adding that their gradual coming into play will help the steady recovery of investment.

Maintaining reasonable investment growth is not a simple expansion of scale, and the new round of stabilizing policies will focus on the total volume, upgrading the structure, and emphasizing the leading role of the central government, said Zhang Di, chief macro analyst at China Galaxy Securities.

Editor: Futura Costaglione