Monetary easing expected

China's economy is likely to face great downward pressure next year, and policymakers need to roll out some monetary stimulus measures, the Chinese Academy of Social Sciences said in a blue book published Tuesday.

In order to keep an annual economic growth rate of 7 percent for 2015, M2, a broad measure of money supply that covers cash in circulation and all deposits, is expected to increase 14 percent year-on-year, and new yuan-denominated loans are estimated to total 11 trillion yuan ($1.77 trillion) for the whole year, according to the book.

China's M2 rose by 12.3 percent by the end of November. The country's new yuan-denominated lending reached 9.08 trillion yuan in the first 11 months of this year, according to data from the central bank.