On a press conference held by the State Council Information Office on 19th, Li Xiaochao, spokesman of National Bureau of Statistics pointed out that investment growth rebounded in the first half of the year, mainly because of growth in new projects, abundant funds, comparatively large profit margins in some industries and lower investment cost.

As revealed by the National Bureau of Statistics on the 19th, China's investment in fixed assets reached 5416.8 billion yuan in the first half of this year, an increase of 25.9%. The growth dropped 3.9 percentage points over the same period last year but increased by 2.2 percentage points over the first quarter of the year.

Li Xiaochao said, new projects declined under the state's controlling policies in the second half of last year. And since then they had been on slow growth. In the first half of this year, new projects investment grew by 6.4%, the second positive growth since May.
He pointed out, because international balance of payment and trade surplus continue to expand, excess liquidity is prominent, the entire community has enough funds to enable larger investment.

Li Xiaochao said, because corporations made large profits, some had prosperous prospects and greater profit margins; they were enthusiastic to invest more money. In the steel industry, domestic steel price was 1000 yuan lower than in the international market.
In addition, some industries had lower investment costs or easy access, and some resources products were cheap, which attracted enterprises to increase their investment.

"Because of these factors, investment is subject to rebounding. We have to take practical measures, in particular to stabilize, improve and implement the policies. In this way, investment rebound can be controlled. "Li Xiaochao concluded.