Lushan quake to have limited impact on Chinese economy (3)

CONSTRUCTION, REAL ESTATE INDUSTRIES TO TAKE BENEFIT

Foudy said that in the next week, the Chinese government will obviously still be in a recovery mode, getting medicine, water and other necessities to the quake-affected people.

After that, he said, the government will start looking at reconstruction and assembling extra funding from the central or provincial government to start rebuilding.

"It will be a slight boost to local construction because there will be a lot of rebuilding efforts that are going to the province. What we saw after the last earthquake, which was much larger, was that Sichuan provinces' growth far outpaced the rest of the country," the professor said.

Talking about the earthquake's impact on the Chinese stock market, Otto said the most affected sectors could be any that has to do with finance, insurance and real estate.

"If the government takes this opportunity to actually do some sort of stimulus," Otto said. "There are sectors that might be bolstered from that, anything that deals with construction. As a result, they will actually get a boost perhaps."