Investment in the real estate sector grew 29.1 percent to 1.84 trillion yuan ($270 billion) in the first eight months, according to the NBS. The craze for property cooled down, as the growth rate was 4.4 percentage points lower than in the first half.

The growth rate in the primary sector (farming, fishing and forestry) was the fastest among the three major sectors in the first eight months, up 63.5 percent, compared with the secondary sector at 28.8 percent and the tertiary sector at 25.5 percent.

Financing SMEs

China's banking authority urged commercial banks to issue more loans to help finance small and medium-sized enterprises (SMEs), farmers and agriculture-related sectors, energy-conservation and emission-reduction projects and post-earthquake reconstruction efforts.

In early August, China's central bank raised the 2008 credit quota by 5 percent for nationwide commercial lenders and by 10 percent for local ones in a bid to finance SMEs that were on the brink of bankruptcy.

The stringent monetary policy adopted last year made commercial banks picky about selecting debtors, shutting the door to a huge number of SMEs. The Guangzhou Daily quoted an official from the National Development and Reform Commission, the country's top economic planner, that more than 67,000 SMEs shut their doors in the first half of the year because of financing problems.

The central bank loosened its control on credit because of easing inflationary pressure and took into consideration the important role SMEs played in providing job opportunities. The China Banking Regulatory Commission said at its August 27 working conference that more loans would be diverted to SMEs to boost their development.

Auto Market Cools Down

After six years of booming supply and demand, the mainland auto market showed signs of cooling down because of rising fuel prices and sluggish domestic demand.

Overall, 629,000 vehicles were sold in the country in August, down 6.34 percent year on year and a decrease of 5.53 percent from July, according to the China Association for Automobile Manufacturers (CAAM). Vehicle sales had dropped for five consecutive months to 434,200 vehicles. Sales of passenger autos also fell because of stricter emissions standards.

Analysts cited several triggers for the sharp slide. Shrinking auto sales made auto manufacturers more cautious about their market estimations, and high fuel prices and a falling stock market dented consumer demand, Rao Da, Secretary General of the China Passenger Car Association, said in a research report. The Beijing Olympic Games in August attracted lots of viewers, keeping them out of car showrooms. Temporary restrictions on car travel during the Olympics also dampened consumers' desire to purchase new vehicles, analysts said.

Rao estimated that auto sales would increase 3 percent year on year in the second half year despite the current market situation.