business

Investment in textile industry grows in Q1

2007-05-31

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In the first quarter, the investment in fixed assets for textile projects, which are higher than 5 million yuan, amounted to 39.06 billion yuan, an increase of 31.6 percent. Among them, chemical fiber industry, encouraged by improved profitability, invested 5.09 billion yuan in total, indicating a faster growth speed of 68.93 percent. Investment in clothing and textiles sectors increased 36.6 percent and 24.6 percent, respectively. Investment in fixed assets to certain degree foretells that the industry will maintain a steady growth trend in the future. Looking at the funding sources in fixed assets investment, the share of self-financing by enterprises reached 76.1 percent, an increased 2.27 percent. Under the influence of RMB appreciation, foreign capital proportion in fixed investment assets declined from 13.4 percent in the same period of 2006 to 9.2 percent. On the impact of excess liquidity, commercial loans in fixed asset investment rose from 8.8 percent of the same period of 2006 up to 11.5 percent. From the regional distribution of investment, eastern region is still the focus of investments, with 64.8 percent of the nationwide investment distributed in Jiangsu, Shandong and Zhejiang provinces. The central region attracted 6.31 billion yuan of fixed assets investment, an increase of 65.2 percent. Fibre2fashion, News Desk - China