CHINA said Tuesday its fixed asset investment, a general indicator of State spending, rose 24.2 percent in the first eight months from a year earlier, led by a strong real estate market.

　　The growth meant 1.65 trillion yuan (US$200 billion) was spent on capital goods like buildings, roads and factories from January to August, the State Statistical Bureau said.

　　Growth in the period was a tad higher than the 24.1 percent pace set in the first seven months. The bureau did not give a figure for August alone.

　　The largest part of the spending — 864 billion yuan — went to infrastructure projects, a 23.9 percent rise over a year earlier, the bureau said.

　　Investment in renovation and upgrade of equipment saw the slowest rise, of 16.4 percent to top 305 billion yuan.

　　Real estate development continued to grow the fastest, rising 30 percent to more than 414 billion yuan.

　　Although investment in commercial housing slipped by 1.2 percentage points compared with the end-July figures, sales boomed, growing by 25.3 percent, or 2.9 percentage points higher than at end-July. Sales were nearly 216 billion yuan.

　　China’s richer eastern provinces continued to take the lion’s share of investment, accounting for more than 964 billion yuan, 23.1 percent higher than a year earlier.

　　The Central Government, fearing a widening gap between the wealthy coast and poorer inland areas, has tried to encourage investment in the relatively undeveloped central and western parts of the country.

　　Spending in central China was nearly 361 billion yuan, 25.7 percent higher than a year earlier, but slower than the 27.5 percent growth at the end of July. Western China drew investment of more than 276 billion yuan, 23.6 percent more than the year-ago period. That growth was also faster than the 21.2 percent pace at the end of July.

　　Fixed asset investment is an important part of China’s plan to keep its economy growing by at least 7 percent this year.

　　Helped by State stimulus spending as well as booming exports and soaring foreign investment, the economy is set to beat that target. It grew by 8 percent in the second quarter and 7.8 percent in the first half.

　　Analysts say the government — which is starting to feel a strain on its budget — is likely to persist with spending plans for this year, but could curtail future stimulus packages if exports and investment hold up.

　　(SD-Agencies)