China bank issued a warning to investors
UPI - Saturday, May 15, 2004
Date: Saturday, May 15, 2004 9:21:24 AM EST
BEIJING, May 15 (UPI) -- China's central bank has warned investors of possible financial risks in hot iron and steel, cement, and electrolytic aluminum markets.
In its first quarterly report this year, the People's Bank of China said investment in China's iron and steel industry surged 96.6 percent during 2003, cement 121.9 percent and electrolytic aluminum 92.9 percent.
Investment in the three sectors continued to rise during the first quarter, with investment in iron and steel industry up 107.2 percent, cement 101.4 percent and electrolytic aluminum 39.3 percent.
The report said it's possible after all the new projects go into production, market supply would greatly exceed demand, creating waste as well as increasing financial risks, the government-run Xinhua news service reported.
China was the world's biggest steel producer for the seventh consecutive year during 2003 The report said the nation's iron and steel production capacity is expected to greatly exceed market demand by the end of 2005. |
