China Investment Shrinks in Almost One Third of Provinces

  • Falling income from land sales, debt undercutting investment
  • Fifteen provinces expanded slower than national growth rate
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Almost a third of Chinese provinces recorded shrinking investment in the first half of the year, the most widespread decline for the same period since 2020, as financially-strained local governments and companies cut back on spending.

Some of the most debt-laden provinces, like Guangxi and Tianjin, had the biggest contraction in fixed-asset investment in the period, according to a Bloomberg News analysis of reports published by local governments.