(Yicai) Sept. 15 -- Although fixed-asset investment in China has declined this year, its composition is shifting increasingly toward technology and innovation, helping build momentum for the economy’s long-term growth, a spokesperson for the National Bureau of Statistics said today.

China’s fixed-asset investment slumped 7.2 percent in the first eight months from a year earlier to CNY29.3 trillion (USD4.4 trillion), with the decline widening by 0.5 percentage point from the first seven months, the NBS said today. By sector, infrastructure investment tumbled 4 percent, manufacturing investment dipped 2.3 percent and real estate development investment plunged 19.9 percent.

The decline was partly due to the frequent occurrence of extreme weather during the summer, including high temperatures, typhoons and flooding, which disrupted project construction in some regions.

Another factor was increased uncertainty in the external environment, while China remains in the process of transitioning from old growth drivers to new ones, prompting companies to take a more cautious approach to investment decisions, NBS spokesperson Wang Guanhua said.

As China’s economy moves into a new stage of development, investment performance should not be assessed simply by the pace of growth, Wang Guanhua said. Instead, attention should be paid to whether funds are being directed towards areas that support economic transformation and upgrading, and whether they can build momentum for long-term growth.

The improvement in the investment mix is reflected in the data. Investment in intellectual property products in China surged 9.2 percent in the eight months ended Aug. 31 year on year, accelerating by 0.1 percentage point from the first seven months, the NBS said. This segment accounted for 15.2 percent of total investment, up 2.3 percentage points from the same period last year.

Investment is also increasingly concentrating in high-tech industries. High-tech industry investment jumped 5.2 percent in the first eight months from the year before, accelerating by 0.2 percentage point from the first seven months. Within the sector, artificial intelligence-related industries experienced rapid growth, with investment in electronic specialty materials manufacturing and integrated circuit manufacturing soaring by 8.5 percent and 12 percent, respectively.

Six Networks

In addition, the central government has identified the "Six Networks," which include water networks, new power grids, computing-power networks, next-generation communications networks, urban underground utility networks and logistics networks, as key areas for infrastructure development this year. Investment in the internet and services sectors related to these "Six Networks" surged 42 percent in the first eight months from a year ago.

As fiscal spending and the use of various types of government bond funds accelerate, the rollout of CNY800 billion (USD119.2 billion) in new policy-based financial instruments in particular is expected to expedite construction of the "Six Networks" and other major projects.

Infrastructure investment growth is likely to turn from negative to positive in the coming period, Wang Qing, chief macroeconomic analyst at Golden Credit Rating International, told Yicai.

In August, value-added industrial output of enterprises above a designated size increased 5.2 percent year on year, accelerating by 0.7 percentage point from the previous month, according to the NBS. Meanwhile, the total retail sales of consumer goods edged up 0.4 percent, a slowdown of 0.2 percentage point from July.

Editors: Dou Shicong, Kim Taylor