Interest rate rise slows investment spending in China's urban centres

Investment spending on Chinese infrastructure has been the main driver behind economic growth in the country. As this slows and China begins to transform itself into an urban society, the Chinese consumer could become more of a player behind growth in the country. According to Richard Batley, economist at Schroders, growth has been slowing in China in response to the Chinese government increasing interest rates. Investment spending has slowed from 40% year-on-year to 25% over the past year. The majority of investment spending has been related to steel mills because this sector has bee...