A Stable 2012, a Promising 2013 (4)

Third, more funds could go to major transportation and urban infrastructure construction.

Fourth, more investment could be made in the construction of reasonably priced commercial housing to push forward urbanization and cope with exorbitant housing prices.

Zhang Hanya, a research fellow from the Investment Association of China, believes more positive factors will contribute to investment growth in 2013 because most of the related policies and measures launched in 2012 would produce delayed results in 2013.

Moreover, since 2013 falls in the middle of the 12th Five-Year Plan (2011-15) period, many projects, which are expected to be completed by 2015, like the construction of high-speed rail lines and expressways and the improvement of water conservation facilities, had to be financially supported before 2013.

Zhang holds that the investment environment will improve in 2013. Private investment accounted for 62 percent of total investment in the first half of 2012 and the ratio will only increase.

However, the global economy will be in a period of deep adjustment. Furthermore, domestic demand will face the risk of decrease and overall increase of price levels, resulting in a similar economic growth as seen in 2012.