China's economy appeared to begin shifting from a pattern of fast development to a more measured rate of growth in 2011.
At the same time, people had to deal with rapid growth in inflation, concerns about high property prices and continued falls in stock market indices.
The new economic environment has given rise to a change in expectations among Chinese people for the coming year, which will have a considerable impact on prices and the performance of markets in 2012. But many are uncertain whether to feel optimistic or pessimistic.
Higher salaries required
"Salaries will have to increase in 2012 because of the serious inflation. I hope I can earn 15 percent more than last year," Zhang Zhengming, an IT engineer at a big international software company in Beijing, told the Global Times.
Though raising salaries will increase costs for companies, the rise in prices of daily goods in China has greatly influenced people's lives, and expectations of higher salaries have become common, according to Zhang.
Human resource services firm 51job Inc questionaired 3,109 companies and 4,096 employees across China and compiled a report. The report showed that the rate of people quitting their jobs in China hit a new high of 18.9 percent in 2011. The figure in 2009 and 2010 was 15.9 percent and 18.5 percent, respectively. The high rate puts more pressure on employers to recruit people, as well as to pay more in order to retain staff.
In the first half of 2012, salaries in China will rise by an average of 9.8 percent year-on-year, according to the report. And for the whole of 2012, the salary growth rate will be bigger than GDP growth.
Job fairs held in Beijing after the Spring Festival holidays also revealed the trend of employers being required to pay more.
Several job fairs were held in the capital last Saturday, but fewer than ever job seekers appeared, according to a report by the Beijing Morning Post. Many employers even doubled the salaries they were offering, due to the lack of applicants.
Market rebound?
"I can sense the bottom level of the stock market is approaching, probably around the middle of 2012," Zhang Shuai, a member of the sales staff at an auto company in Shanghai, told the Global Times.
Zhang invested in the stock markets in 2008, when the Shanghai Composite Index was more than 5,000.
Now, however, the index is around 2,300. Zhang spent around 400,000 yuan ($63,560) but his investment is worth less than 100,000 yuan now.
"I don't know exactly when the lowest point for the markets will come, but I guess it will be this year," he noted.
Zhang's opinion echoed that of many experts.
Xie Guozhong, an independent economist and former Morgan Stanley chief economist for the Asia-Pacific Region, said that the lowest point of the markets will appear in 2012 and they will rebound after that, thanks partly to changes to the markets' regulatory system.
Senior financial observer Hou Ning also said the markets would start to recover this year.
Zhang said that even though a rebound would offer an opportunity, he is so frightened by "the roller coaster" of stock indices that he can't make decisions.
"I want to invest my money, but I can't find good ways. The real estate market is in recession," Zhang noted.
"The Chinese stock markets are not reasonable. I don't know other ways except putting my money into banks," he said.
Falling house prices
There is also a common expectation among Chinese people that house prices will continue to fall.
The expectation began in the middle of 2011, after the central government launched a series of policies, including purchase limits in 46 cities and new rules to limit bank loans, in order to curb the surge in house prices.
At least 23 of the 46 cities announced by end of 2011 that the policy would still be carried on this year, increasing the anticipation of a drop in prices.
According to research by Shenzhen WorldUnion Properties Consultancy Co, potential house buyers expect house prices will drop by 35 percent this year from the current level, Wang Haibin, research director of the company said.
A J.P. Morgan report released on February 7 forecast that average house prices would decrease by 5 to 10 percent in China this year, and by 15 to 20 percent in first-tier cities.
"I won't buy a house in the next few years. The current price in our city, around 8,000 yuan a square meter, is still too high," Shao Qi, a 43-year-old office worker in Xuzhou, a third-tier city in Jiangsu Province, told the Global Times.
Shao already has two houses. She lives in one and the other will be for her 14-year-old son, although it is vacant now. "It's difficult to rent out houses in third-tier cities," Shao noted.
"We will consider buying one, if the house price drops by 40 to 50 percent in Beijing. If not, we will continue to rent an apartment," Li Hui and Lu Jialin, a couple living in Beijing, told the Global Times.
"These expectations reflect Chinese people's philosophy in a time of change. The fact that house prices were high and salaries relatively low, even though the economy was growing fast, was neglected somehow," Zhang Xichao, doctor of philosophy at Beijing Normal University, told the Global Times.
"When the economy started to slow down, people noticed these problems and worried. With these new expectations and real efforts, the economy can hopefully find a new balance point," Zhang said.