In 2012, the economy growth slowed down, as there was no new growth engine ,the government increased the infrastructure investments and public expenditure to prevent economy growth from declining too quickly. Stock market rose a few times when those stimulating measures were taken, and fell as they did not meet the expectation. Looking ahead, the pressure of deleverage will remain in 2013. For the whole year, the rise trend of A-share market has little chance pick up significantly opportunities can be expected. In the first quarter, it is recommended to allocate more assets to sectors with higher beta like builders and building materials. From perspective of the whole year, medicine and food are strongly recommended. Appliances and automotive are also good choices. Whether to invest in real estate sector or not depends on the policy. Those companies benefit from transformation will be stars of the year. <<