The primary industry and real estate formed support

 The primary industry and real estate formed support for investment in January-February. The national fixed asset investment (excluding farmers) was 444.6 billion yuan, a year-on-year increase of 7.9%. The growth rate was 0.7 percentage points higher than the previous year, which was higher than the market 7%. expected. In this regard, many institutions believe that mainly due to real estate investment and investment in the primary industry exceeded expectations. 


The data shows that real estate development investment in January-February increased by 9.9% year-on-year, and the growth rate was 2.9 percentage points higher than that of the previous year; the investment in the primary industry increased by 27.8% year-on-year, which was 16 percentage points higher than that in 2017. 


Kyushu Securities analyzed that the rebound of the primary industry or the promotion of rural policy strategies and poverty alleviation, but does not rule out the abnormal value. “The sustainability of the high investment in the primary industry needs to be further observed.” 


Guotai Junan believes that the relatively stable sales of real estate will form a certain support for investment, in addition, the investment will rebound or with the January-Pear PSL (PSL, Pledged The abbreviation of Supplementary Lending, mortgage replenishment loan) is related to the huge release. The release of PSL at the beginning of the year can be explained by non-seasonal factors, and historical data shows that PSL has strong consistency with the new construction of real estate. 


The interpretation of the spokesperson of the National Bureau of Statistics is that there is a certain lag factor in the rapid growth of real estate investment. In terms of cost, in addition to the increase in land prices, the cost of raw materials and labor costs are rising. “In order to curb the excessive rise in housing prices, the first-tier cities will also plan to introduce some land supply. Real estate investment should maintain a relatively steady growth, but it is more difficult to continue to rise sharply.”