Survey indicates bullish mood for 2013 stock prospects

More Chinese investors believe the country's stock market will trend upward this year, as they expect further easing of economic policies, according to a recent survey.

Nearly 45.4 percent of 5,183 investors polled by the China Securities Investor Protection Fund Corporation said the stock market will strengthen this year, up 10.72 percentage points from last year's survey results, according to a company report released on Friday.

Around 27.7 percent of respondents said they expect the market to stay flat, while nine percent forecast a drop, the report said.

The report said 40 percent of investors believe economic policies will be further relaxed this year, while 26.8 percent expect China's GDP growth to gather steam.

As a result of the bullish sentiment, 33.5 percent of polled investors said they will put more capital in stocks this year, an increase of 16 percentage points from a year earlier.

China's securities regulator has initiated a string of reforms, including imposing rules on the pricing of initial public offerings, removing poorly performing companies from bourses and tightening requirements for re-listing to regulate the market, which has remained dull in recent years despite rapid economic growth.

Friday's report showed that most investors found the reforms to be effective, adding that they expect harsher punishments for illegal activity, such as inside trading.