China's top economic concern now growth not inflation

What are Beijing's five priority policies for economic expansion in 2012?

Macroeconomic controls, agricultural development, structural improvements, a more open fiscal system, and stronger social security to get full government push, says HSBC.

These main concerns were determined during the annual Central Economic Work Conference, which is China's key policy agenda meeting for 2012.

In explaining the impetus for China's economic focus for 2012, HSBC said: "Downside risks to growth arising mainly come from external demand and property market weakness, the latter thanks to the continuation of a prolonged period of property tightening."

"Besides rising downside risks to growth, Beijing policy makers still see elevated price pressures within the economy, complicating their mission to strike the most balanced and sustainable growth path for the country. In their view, expanding China's domestic demand is the best way to cope with a fast changing international and domestic environment. To this end, spending needs to be targeted towards the improvement of social security and people's welfare, development of China's service sectors, and expanding the share of national income for the country's middle-income group,” HSBC added.

"To strike a balance between stable and rapid growth, economic structural adjustments and the management of inflation expectations, the government will continue to implement proactive fiscal policy and prudent monetary policy, keep stability and continuity of policies and make policies more targeted, flexibility and forward-looking," it said further.