RMB PLUNGE UNLIKELY
The Chinese renminbi (RMB), or the yuan, has seen sharp falls since October, stoking market concerns. But economists ruled out the possibility of persistent slips in 2017, and believe China is capable of handling the impact, even if bigger-than-expected exchange rate changes occur.
There is no precedent for a country with the world's largest current account surplus, a leading GDP growth rate, abundant foreign exchange reserves and capital restrictions to see substantial depreciation of its currency, Yu said.
China's steady economic advance determines RMB will remain strong against other currencies, Zhang said, and considers recent weakness a correction of previous over-valuation. He expects RMB to end the losing streak by the end of the first half of 2017.
STABILIZING PROPERTY MARKET
A key driver of fixed-asset investment, China's property sector will be closely watched in 2017 due to its impact on economic growth.
Following tougher home-buying rules to contain speculation and hold surging prices in check, property sales will grow at a slower pace next year, said Zhang. However, he predicts China's urbanization will support housing demand and keep market growth at a steady level.
In 2017, China's top legislature is expected to pass the long-discussed property tax law, which will increase the cost of speculation, said Zhang Shuyu, a macroeconomic expert with the University of International Business and Economics.
In addition, the government will likely continue differentiated property policies to address market divergence between top-tier cities and smaller ones.
CHINESE ENGINE FOR GLOBAL ECONOMY
The world economy is troubled by a sluggish recovery, and faces an aging population and a widening wealth gap, among other long-term obstacles. In contrast, China, albeit experiencing a slowdown, has an enviable 6.5 to 7 percent GDP growth and continues to power global growth.
"Under this background, the world will increasingly rely on China to weather the hardships next year, and China will play an even bigger role in pushing forward globalization," Zhang Liqun said.
As the world's two largest economies, economic ties between China and the United States also deserve more attention. Huang Yiping noted that the U.S. President-elect Donald Trump's claims to name China a currency manipulator and impose hefty tariffs on its products will likely create enormous uncertainty and bring a negative influence.
