China's central government may retain its 7.5 percent GDP growth target and 4 percent CPI inflation target for next year, Barclays said in a research note on Monday.

However, the market consensus is for somewhat faster growth and slightly lower inflation, the note said.

China's policymakers are expected to gather this month for the annual Central Economic Work Conference to set the policy framework for 2013.

Fiscal policy is likely to remain proactive, but monetary policy probably has already returned to neutral. The yuan should appreciate modestly, with increasing two-way movements of the exchange rate, said the note.

Also, the government may soon announce policies concerning income distribution and tax reform, it added. Specifically, the pilot program to replace business tax for the services industry with a value-added tax, or VAT, may be extended to other cities. There have also been discussions about a structural reduction of the overall tax burden.

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