China's Fixed Asset Investment Declines More Than Expected Over 11 Months

China's fixed asset investment recorded a decline greater than expected from January to November 2025, reflecting continued pressures on investment activity in the world's second-largest economy, according to official data.

The figures showed that fixed investment fell by 2.6% year-on-year during the first eleven months of the year, compared to market expectations of a decline of about 2.3%, following a drop of 1.7% in the first ten months of 2025. This marks the third consecutive month of decline and the sharpest drop since June 2020.

Pressures on Real Estate and Infrastructure

This weak performance was driven by the continued decline in real estate investment, which decreased by 15.9%, compared to a decline of 14.7% in the previous period, along with a 1.1% decrease in infrastructure investment, after a slight drop of 0.1%.

Investment growth in the manufacturing sector also slowed to 1.9%, down from 2.7% in the January to October period, indicating weak industrial momentum.

Widespread Slowdown Across Sectors

Data across economic sectors showed:

• Slowdown in investment growth in the primary sector to 2.7% from 2.9%

• Decline in growth of the secondary sector to 3.9% from 4.8%

• Increased pace of decline in the tertiary sector to 6.3% compared to 5.3%

Excluding Real Estate

Excluding the real estate sector, fixed asset investment showed an increase of 0.8%, but this increase was weaker than the 1.7% growth during the first ten months of the year, reflecting a general weakness in investment appetite.

Monthly Overview

On a monthly basis, fixed investment fell by 1% in November, following a larger decline of 1.5% in October, indicating a relative slowdown in the pace of decline, without a clear return to recovery.

EcoPulse24 Analysis

These data reflect ongoing structural pressures on the Chinese economy, particularly in the real estate sector, with limited impact from stimulus measures thus far, as markets await any additional steps to support investment and boost confidence in the near future.