6. Will the yuan appreciate further or  depreciate?

Although in recent months the trade  surplus of China has declined dramatically and capital outflows have  occurred, we predict in 2012 the exchange rate of the yuan against the dollar  will continue to appreciate moderately.

The Chinese government may still  hesitate to revalue the yuan faster and more dramatically because it worries  that it may further shock the weak exports and pose a negative impact on  asset prices as well as financial industries.

However, to avoid a trade war and  facilitate economic restructuring, we think the authorities would prefer the  yuan to appreciate 3 to 5 percent year-on-year in 2012.

And the exchange rate of the yuan  against the dollar will rise to 6.25 by the end of this year, before it  increases to 6 by the end of 2012. After that, the currency rate between the  yuan and the dollar is likely to remain stable.

----- Wang Tao, head of China  economic research at UBS Securities Co Ltd

7. Will the Chinese stock market continue  to see volatility?

The valuations of the A-share market  have fallen so low that the systemic risk in China's economy may have already  been factored into current market prices.

While inflationary pressure will  continue to ease, the policymakers are likely to further loosen credit  tightening. China could also benefit from lower commodities prices that were  pushed down by the poor prospects for the world's economy.

It seems that the most painful period  for investors has passed. If the reserve requirement ratio is lowered by the  central bank to 18 percent, it may help improve liquidity and trigger a bull  run in the market that could last for several years.

-----Frank Gong, vice  chairman of China Investment Banking at JP Morgan Chase & Co

8. Will China be hit by a backlash in its  energy saving and emission reducing efforts?

China is in a new arms race. We have  already seen areas of the country affected by brown-outs as the  infrastructure developments struggle to keep pace with increased demand.

Only vision-led and coherent energy  policies that address the "energy trilemma" will gain public  acceptance and investors' trust in delivering a sustainable energy future.  This is particularly true in the case of energy efficiency, which is not the  "low-hanging fruit" that many commentators have suggested.

China has made significant headway in  delivering energy-efficiency programs. The 1,000 Enterprise Program is aimed  at reducing energy consumption per unit of GDP by 20 percent over five years.  Our findings suggest that this program has contributed to a considerable  reduction in energy consumption and carbon emissions in the target enterprises.

As China continues its inexorable  growth, becoming the world's No 1 energy consumer, the challenge is to build  on these successes and balance the need for energy security and social  equity. However, environmental-impact mitigation remains the country's greatest  challenge, especially in the context of increased urbanization, with up to 50  megacities projected by 2050.

Potential stresses in the energy-water  nexus will need to be carefully monitored. Car ownership is also growing at a  rate of 12 percent a year and our transport scenarios will show that clear  policies are essential to limit the increase in greenhouse gas emissions.

----- Christoph Frei, secretary  general of the World Energy Council

9. Will China see a sharp decrease in  foreign direct investment?

China will remain a magnet for foreign  direct investment in 2012. While all major international companies are  already here, most are planning to increase their investments in the country.  Moreover, we are now seeing many small and medium-sized companies coming to  China for the first time.

For many companies, China's  intellectual property rights (IPR) is their biggest concern. However, if  these companies truly have a product that is needed in China and they don't  manufacture it here it because of the IPR issue, some company in China will  eventually figure out how to make it and they will have new competitors  anyway.

My advice is to manufacture the  product in China so that these companies can meet the competition head-on and  be most competitive.

One reason that some international  companies feel business is getting more difficult in China is because local  companies are becoming stronger and gaining market share month to month.

While many companies may not be as  enthusiastic about manufacturing products in China and shipping them back to  the United States or Europe because costs in China are going up and the yuan  is appreciating   against the dollar, they will still want to  produce in China in order to gain access to the market.

-----Jack Perkowski,  founder of JFP Holding

10. Will China's local government debt  see default on a large scale in 2012?

The massive influx of liquidity since  the crisis has helped corporations meet obligations on previous debt.  However, a loose credit policy can't remain in place forever, particularly in  an environment of high inflation.

Credit risk has risen from an  overextension of loans to local governments and property firms, both of which  have questionable medium-term repayment capacity. Off-balance-sheet activity  has also grown, adding fire to the credit boom and providing banks with new  channels to window-dress financials.

If local governments were to encounter  repayment issues, this could extend beyond their obligations to banks to  their obligations to contractors and subcontractors of projects etc. In this  regard, the entire transport and infrastructure portfolio could be affected.

----- Charlene Chu, head of China  Financial Institutions, Fitch Ratings

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