Turning now to China's property sector, which is showing further signs of cooling. The latest figures indicate housing inflation in China has hit its lowest in a year in November. Tight housing regulations enacted by the central government to cool property prices and to ward off a housing bubble is starting to take effect.

Consumers look at models of residential buildings on sale in Tancheng County, Linyi City of east China's Shandong Province, March 22, 2011. [Xinhua]

According to Professor Li Peilin of the Chinese Academy of Social Science or CASS - the nation's top think tank, continuing regulation by the central government will put additional pressure on the property market to slow further.

He adds that because property development is closely connected with regional economic development, a breakdown in the housing sector will have devastating effects on the economy.

This comes after CASS released its annual Social Blue Book which cites the importance of industrialization and urbanization as the main engines of growth for next year.