The State Council Information Office held a press conference today to detail the national economic performance for August 2026. According to the briefing, fixed asset investment in the first eight months of the year remained substantial, nearing a total of 30 trillion yuan. A closer examination of the structure and quality reveals that investment in new growth drivers is expanding rapidly, with acceleration in several sectors, as investment priorities shift from scale expansion toward technological innovation, industrial upgrading, and foundational support.
August data indicates a stable national economy with a trend toward higher quality and innovation. Production and supply grew steadily, employment and prices remained largely stable, foreign trade expanded rapidly, and the supporting role of new growth drivers strengthened, maintaining the overall momentum of stable and progressive development.
Fixed asset investment saw a decline, while investment in intellectual property products grew at a rapid pace. From January to August, national fixed asset investment (excluding rural households) totaled 293,092 billion yuan, a year-on-year decrease of 7.2%. Excluding real estate development, this figure fell by 4.2%. By industry breakdown, primary industry investment dropped 2.4%, secondary industry investment declined 2.9%, and tertiary industry investment fell 9.9%. In specific segments, infrastructure investment decreased 4.0%, manufacturing investment fell 2.3%, and real estate development investment plunged 19.9%. Private investment contracted 10.1%, or 6.4% when real estate development is excluded.
Investment shifts toward modern infrastructure
Investment is increasingly directed toward modern infrastructure networks. As the inaugural year of the "15th Five-Year Plan," a batch of major engineering projects, including the "six networks," are accelerating. Cross-regional transport corridors, major energy and water conservancy projects, new infrastructure, and urban renewal initiatives are progressing steadily, which is expected to further bolster support for high-quality development. In the first eight months, investment in internet and related services linked to these networks surged 42% year-on-year. Air transport and water transport investment grew 16.7% and 14.7%, respectively, while power supply investment rose 12.7%. Departmental data shows that as of the end of June, over 70 computing power corridors have been established around computing hub facilities.
Better meeting housing needs emerges as new trend in real estate market
This year, various regions and departments have adhered to city-specific policies, adjusting and optimizing real estate measures. These efforts focus on controlling new supply, reducing inventory, improving supply quality, revitalizing existing commercial housing through multiple channels, resolving stock levels, steadily advancing urban renewal, actively promoting housing system adjustments, and accelerating the establishment of a new real estate development model. The effects are gradually becoming apparent.
First, overall real estate transaction volumes are improving. As the market evolves, the transaction landscape is undergoing profound changes, shifting from a dominance of new home sales toward a greater share of existing home transactions. According to data from the Ministry of Housing and Urban-Rural Development, the contracted area of second-hand home transactions from January to August reached 550 million square meters, surpassing new home sales for several consecutive months.
Second, year-on-year price declines for real estate are narrowing. For new residential housing, in August, 38 of 70 large and medium-sized cities saw narrower year-on-year price declines compared to the previous month. In first-tier, second-tier, and third-tier cities, these declines narrowed by 0.2, 0.1, and 0.1 percentage points, respectively. For existing homes, 48 of 70 cities reported narrower declines, with reductions in first, second, and third-tier cities narrowing by 1.0, 0.2, and 0.2 percentage points, respectively.
Third, inventory of new commercial housing continues to decrease. Regions have actively adopted measures such as purchase subsidies, trade-in policies, and converting stock units into affordable housing to drive destocking, yielding positive results. By the end of August, the unsold area of new commercial housing nationwide fell 1.1% year-on-year, marking six consecutive months of decline, with the pace of reduction expanding recently. Notably, the area of commercial housing unsold for under three years dropped 4.2%, indicating more pronounced short-term inventory reduction effects.
It is important to note that the supply-demand dynamics of China's real estate market have shifted significantly in recent years, making better satisfaction of housing needs a new trend. Currently, housing demands are diversifying toward questions of quality and suitability, with increasing preferences for smart, green, and age-friendly features. However, the existing operational model is struggling to adapt to these changes, necessitating an accelerated transformation of the real estate development approach. This year, relevant departments have furthered reforms to the housing provident fund system, improved commercial housing sales and ancillary regulations, and promoted the construction of a new development model. Looking ahead, the implementation of these policies is expected to facilitate the transitional development of the real estate market, better fulfilling people's aspirations for a better life.