Capital requirements for new projects in four sectors have been raised by the State Council in another attempt to cool the mainland's booming economy, state media reports say.
The four sectors - steel, aluminium, cement and real estate - all saw breakneck growth in the past quarter, fuelling fears that the mainland's economy was overheating and the country could face the danger of over-capacity once the investment fad cooled down.
Xinhua reported yesterday that capital requirements for new steel projects had been raised from 25 per cent to a minimum of 45 per cent. The ratios for aluminium, cement and real estate projects had been raised from 20 per cent to 35 per cent or above.
The latest move - if implemented faithfully - means that investors will have to rely less on bank credit in their financing.
In a statement released by Xinhua, the State Council said the adjustment of the capital requirement would 'help curb excessive fixed-asset investment and over-expansion of credit'.
The statement came just a day after state leaders held a meeting on Monday to review the state of the economy.
