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A senior official has expressed his optimism about the prospects for China's economy in 2007.

Wang Zhongming from the state-owned assets supervisory body under the State Council made the statement Sunday while addressing a group of leading Chinese business people in Shanghai.

The official attributed the country's stable economic growth in 2006 to a dynamic capital market and steady energy supplies.

He explained the government's efforts to boost rural development, encourage innovation-based industries and prepare for the 2008 Olympic Games will make China's economy more promising.

The World Bank estimated China's economy may grow by 10.4 percent this year. It also raised the projections of the growth rate in 2007 from 8.5 percent to 9.3 percent.