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China's fixed-asset investment rises 25.7% through April



16 May 2008 @ 12:30 am EST

As China statistics bureau said Thursday, China's fixed-asset investment jumped 25.7 percent in the first four months of this year, underscoring concerns that the economy may be overheating.

The growth rate was 25.5 percent in the same period last year, and with a 24.6 percent increase in the first three months of this year, the National Bureau of Statistics said.

Some economist said, "The government needs to keep tight control over bank lending and investment expansion to prevent overheating".

Last Friday, Vice Premier Wang Qishan said, investment growth "hasn't yet come down to a normal level".

The government has repeatedly raised interest rates and tightened lending policies to prevent the economy from overheating.

Banks are required to set aside a record 16.5 percent of deposits as reserves from May 20.

The growth may accelerate as southwestern Sichuan province rebuilds after the country's worst earthquake in more than 50 years.

Reconstruction work after the quake may boost investment in fixed assets, analysts said.

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