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China needs to boost long-term investment to maintain sustainable economic growth, the China Securities Journal cited a research report as saying on Wednesday.

The report, written by Li Yang and Yu Weibin, two researchers from the Finance Institute under the Chinese Academy of Social Sciences (CASS), said that the current investment growth rate is not high enough to absorb the increase in national savings. The country should encourage more investment in improving infrastructure and the tertiary industry

As problems of excess supply exist in more and more industrial sectors, more investment should flow into new sectors including residential housing, it said.

The report advised it is risky to rely too much on investment bolstered by bank loans. It said the country should go all out to develop its stock market and bond market, making full use of financial institutions including insurance companies and fund companies, in order to expand the scale of investment.

China saw a record high of 14 trillion yuan (1.73 trillion U.S.dollars) in domestic saving deposits last year with the reduction in personal investment and downturn in domestic consumption.