July 20, 2004

Shanghai - China's property sector was expected to fall into a three-year slump, while its embattled power sector boomed amid continuing heavy demand for electricity, the official China Securities Journal, citing a report from the National Development and Reform Commission, said yesterday.

China faced an electricity supply shortfall of 30 000 megawatts and had spent 127.8 billion yuan (R92.3 billion) in power projects in the first five months of the year, up 49.3 percent on an annual basis.

Property growth would fall to about 15 percent or lower in the second half because of the restricted lending conditions to cool the economy and as higher prices dampened demand,. Growth in the five months fell to 32 percent from 34.6 percent in the January-to-April period and 41.1 percent in the first quarter.