(Dec 24): China’s local borrowing for infrastructure spending is on pace to hit a six-year low, as Beijing clamps down on risks in a strategy shift that calls into question its promise to stop an unprecedented investment slump. That puts the amount of bonds meant for investment in line to decrease for a second straight year. “The contraction in FAI signals a break in China’s pattern of economic growth,” said Adam Wolfe, an economist at Absolute Strategy Research. Infrastructure investment contracted by about 12% on year in both October and November, according to Macquarie Group’s estimates based on official figures. That said, he expects the authorities will keep the taps of stimulus open just enough to counter any worse-than-expected headwinds for exports and ensure steady economic growth.

Source: The Edge Markets December 23, 2025 23:59 UTC