The next generation of political leadership in China under Wen Jiabao, set to take over in Autumn 2012, is offering the continuity necessary for long-term sustainability, social stability, and balanced growth, according to a report from Invesco.

The future leaders are deeply involved in China’s twelfth five-year plan. Rebalancing demand, upgrading traditional industries, and narrowing the gaps between both rural and urban areas and the rich and poor through increased development of inland regions, are all part of it, according to the report.

The approach will help make the equity markets to flourish, the Atlanta-headquartered investment manager predicted.

The incoming politicians plan to maintain the long-term objectives already set out by the premier, as deviations are considered not in the best interest of economic growth or the avoidance of social disruptions. This upholding of the old is expected to lead to a smooth transition and the next few months are expected to provide more concrete details regarding what they are going to do, said Invesco.

Invesco’s China experts projected GDP growth rates of 9.2 per cent in 2011 and 8.7 per cent in 2012, combined with expected decreases in inflation due to food price stabilisation and the levelling of commodity prices bode well for the beginning of their appointments.