Tang said higher total demand this year will also see a substantial increase in imports, which could rise by 10 percent.
Wang Tao, head of China economic research at UBS Securities, said the credit expansion since the second half of 2012, a reviving property market and accelerated investment by local governments will see the economy continue to grow at a faster pace in the first half of the year.
"But when it comes to the second half, the central government might be more concerned over property prices, inflation and shadow banking activities, therefore, liquidity might be tightened and economic growth would be slower."
Wang said fine-tuning of the policies might come as early as April, after economic and credit data for the first quarter is released.
E Yongjian, analyst at the Bank of Communications, said: "Instead of traditional instruments such as the reserve requirement ratio for commercial banks, the central bank is likely to conduct more open market operations this year as it introduces new operations."
On Jan 18, the central bank announced the introduction of short-term liquidity operations as part of its open market operations to smooth interbank liquidity and money market interest rates.
Yao Wei, China economist at Societe Generale CIB, said: "The central bank is in the process of moving toward a price-based modern monetary policy regime, and the old policy tools, including benchmark lending and deposit rates, will be phased out."
wangxiaotian@chinadaily.com.cn
This is the most real, most helpless and most motivate life expense of Beijing!
Feedback
RSS
