There will be lower property transaction taxes, a lower mortgage rate floor and minimum down payment requirement and an acceleration of public rental property development.

I think that these new policies are very bullish for China's real estate market. They will allow people to more easily buy houses and rent apartments in the months and years to come — without going into deep debt. I look for these policies to prevent a sharp sell-off in Chinese real estate market, like other countries have experienced, and instead allow the sector to strengthen in the months to come.

Reason #3: Continued Strong Economic Growth

China's economic growth continues to be robust — growing around 9% in 2008. At first glance, I'm sure many investors are discouraged by China's economic growth slowing from 11.4% in 2007 to 9% in 2008. But, what you need to remember is that the 9% economic growth rate is still very respectable, especially in an economic downturn like the one we're experiencing now. With a 9% GDP growth rate, China still has the fastest growth rate of the world's 20 biggest economies.

And unlike many nations around the world, the Chinese government has taken a proactive stance towards overcoming the global financial crisis and economic slowdown. In recent months, China has eased its monetary tightening policy, as inflation in the country has finally cooled — in November, economic data showed that inflation is at 2.4%, the slowest pace since June 2007.

With inflation finally stable in the country, the Chinese government can remain focused on stimulating economic growth, and it also gives policymakers the ability to continue slashing interest rates. All of which bodes well for Chinese stock prices. (See also: "Building a Case for China.")

So as you can see, China is still well-positioned to continue its robust economic growth and come through the financial crisis relatively unscathed compared to other global economies. Leading economists are projecting a slower but still robust GDP growth for China in 2009. Most are anticipating that the country will grow 8%. Regardless, China will be the world's fastest growing major economy. And a strong economy will support a resilient stock market.

Reason #4…