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Think China overspends on infrastructure? Think again, ADB says

Ghost cities aside, country needs to boost annual outlays to $753bn

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A subway tunnel under construction in Changsha, China   © Reuters

HONG KONG Ghost cities, deserted bridges and closed factories littered across China have stirred concern about a debt-fueled investment bubble. Despite such worries, the Asian Development Bank says there is room to step up infrastructure spending in the world's second-largest economy.

China will need $753 billion worth of infrastructure investment annually from 2016 to 2020, the Manila-based development bank said in a report released on Feb. 28. This amount is far higher than Beijing's estimated investment of $686 billion in 2015, resulting in a funding gap equivalent to 0.5% of China's gross domestic product.

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