China's fixed-asset investment recovery to extend into 2021: report

BEIJING -- China's fixed-asset investment (FAI) will resume the upward momentum next year, with strong infrastructure FAI underpinning its growth at the beginning of the year, Fitch Ratings said in a report.

The country's FAI growth is likely to accelerate in the fourth quarter of this year, leading to a mild increase for the whole year, the rating agency said, noting that such a trend suggests that FAI growth will remain stable in 2021.

China's FAI went up by 0.8 percent year-on-year in the first three quarters, the first gain in 2020, data from the National Bureau of Statistics showed.

During the nine-month period, infrastructure FAI recovery was weaker than expected, the report said, adding that the slower growth was partly attributed to the longer-than-expected approval process and project commencement delays due to a prolonged rainy season in July.

"This may imply some investments will be carried over into the fourth quarter and early 2021," it said.

The country's full-year FAI growth in 2021 may be constrained by the special bond quota, which has yet to be announced, it added.