Context:
Reliance on infrastructure may lead to
overexposure, experts say
Plans announced by local governments to invest heavily in fixed assets this year have ignited a chorus of debt warnings from experts.
A total of 19 provincial-level regions, out of 31 on the mainland, have set fixed-asset investment growth targets above 20 percent. Most of them are in central and western regions.
In 2012, fixed-asset investment, or money spent on infrastructure, factories and public facilities, far exceeded 20 percent over the year in 11 provincial-level regions.
The national average was 20.6 percent.
Experts said overspending on fixed assets may lead to mounting local debt and risk lenders being overexposed.
More:
http://www.chinadaily.com.cn/china/2013-02/05/content_16200116.htm
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