Infrastructure may help economic recovery

The rapid growth of wealth in China has come to an end, while investment in infrastructure may boost the country's economic recovery in 2013, said Pu Yonghao, Hong Kong-based regional chief investment officer for Asia Pacific at UBS Wealth Management.

In a talk on Tuesday about China's economic outlook for 2013, Pu said several indicators including the balance of current accounts and consumption of luxury goods show that there are fewer opportunities in China for people to get rich overnight.

Investment in infrastructure and steady growth in the realty market may help China's economic recovery. The prospects of renmibi depends on the performance of foreign trade, Pu said.

Currencies from emerging market may become attractive for investors in 2013, Pu said. The Philippine peso, South Korean won and Singapore dollar with the base currency of the US dollar have witnessed spot returns of more than 4 percent since the beginning of 2012.

As for the global economic outlook, the US fiscal cliff is the most pressing risk. If Republicans and Democrats reach an agreement to avert the fiscal cliff, the global economy will be more likely to step onto a stable and steady track, Pu said.