China's next phase of growth to start 2011 - researcher

A pedestrian walks past a Versace store in Beijing March 17, 2010. China's economy will bottom out in the first half of next year before entering a new expansionary cycle that could last for a decade, a government researcher was quoted as saying by the official China Securities Journal on Thursday.

SHANGHAI (Reuters) - China's economy will bottom out in the first half of next year before entering a new expansionary cycle that could last for a decade, a government researcher was quoted as saying by the official China Securities Journal on Thursday.

Despite slower growth in most industries in the first half of this year, the economy may pick up speed after the second quarter of 2011 as the government is expected to gradually ease tightening and boost investment in housing, the newspaper said, citing Yang Jianlong, a researcher with China's cabinet.

During the new "Golden Decade", China's economy is likely to witness rapid growth and low inflation, the article said.

Data released over the weekend showed China's consumer price index rose 3.5 percent in the year to August from 3.3 percent in July, its fastest pace in 22 months. The rises largely stemmed from higher food costs.

(Reporting by Melanie Lee; Editing by Ken Wills)