CHINA TO CUT EXCESSIVE CAPITAL INVESTMENT FURTHER
China said it will continue its efforts
to cut excessive capital investment, and noted policies to cool
the economy have so far failed.
    Fixed asset investment grew 16.7 pct to 296.7 billion yuan
in 1986, outstripping energy and raw materials growth, the
China Daily quoted Zhou Daojiong, president of the People's
Construction Bank of China, as saying.
    Over 160,000 projects costing 895 billion yuan are now
under construction, and will absorb 60 pct of the funds
earmarked for investment under China's current five-year
economic plan (1986-1990), he said.
    The state-run construction bank will review all investment
projects now under way or scheduled, and immediately halt those
deemed unnecessary or with a poor economic return, Zhou said.
    Over 20 billion yuan of unauthorised spending by local
governments or enterprises were partly responsible for the
overheated rate of investment, he said.
    Another two or three years of measures to curb excessive
investment were needed to bring it under control, Zhou said.
 REUTER
