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PRC spending rises despite measures

China's investment in factories, real estate and other urban assets rose 25.7 percent in the first three quarters of this year from the same period last year, a central bank official said yesterday, despite curbs meant to prevent runaway spending.

The Chinese government is trying to rein in domestic investment in the real estate sector and industries, including automakers and textile manufacturers, to control soaring housing prices and head off overspending that Chinese leaders worry could ignite a financial crisis.

The flood of money pouring in from China's exports, however, has made it difficult for Beijing to contain investment.

Wu Xiaoling (吳曉靈), vice governor of the People's Bank of China, said the investment growth rate was still very high.

In a statement on the bank's Web site, Wu also said retail sales were up 15.9 percent in the first nine months of the year compared to the year-earlier period.

China's consumer price index last month was 6.2 percent higher than the same month one year earlier.

The same figure was given by another government official last week. China's National Bureau of Statistics is expected to release official third-quarter economic data on Thursday.

The central bank has already said it expects inflation for the year to exceed the government's 3 percent target.
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