Citi says Chinese investment is slowing - in a note released today, the investment bank says it sees little conviction in a sustainable investment rebound in China. Having visited several local provinces, Citi states that investment is losing momentum due to a variety of factors including local government debt overhang, higher cost of capital and financial risks yet to be fully exposed. In terms of the higher cost of capital, funding costs appear to have increased following the liquidity crunch in June. The bank notes that fixed-asset investment growth has also slowed due to the high growth base of the last 5 years. Local governments are trying to identify new sources of growth, however, acknowledge that sustaining the growth seen in the past few years will be challenging. (VIEW LINK)