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FXstreet.com (Barcelona) - Tomo Kinoshita, Chief Economist at Nomura Securities has taken a look at the direction that Chinese reforms may be heading in for 2013.

He begins by noting the shifting focus of growth from investment/exports to consumer spending. He think that the Xi Jinping administration will push through reforms, centred on hiking the minimum wage and reforming income distribution and a recovery in housing investment is likely to increase spending on consumer durables.

Secondly, he sees a reining in of excessive investment. He believes that curbing excessive investment is important in terms of preventing overcapacity in the future and improving energy efficiency. He is expecting almost no progress with reforms in this area.

Finally, Kinoshita is expecting steps to be taken to make CNY an international currency. He writes, "We expect liberalization of capital accounts and greater flexibility in forex regulations by around 2020. We also think the new administration will introduce phased monetary reforms such as deregulating interest rates as a prerequisite for CNY to become an international currency."

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