(Yicai Global) Jan. 8 -- Major investment bank China International Capital Corp. Ltd. has positive expectations for the country's economic performance and currency this year, according to its latest report, published this morning.

The Beijing-based firm shifted its year-end prediction for the yuan-dollar exchange rate to 6.28 from 6.48, expecting US tax cuts to boost American growth and drive up Chinese exports.

US President Donald Trump signed the new tax policy into law on Dec. 22, which he described as the biggest tax reform in the country's history.

The lender also raised predictions for China's major economic indicators and expects the People's Bank of China, the nation's central bank, to raise interest rates by 0.25 percentage point in 2018. It forecasts that gross domestic product will increase between 6.9 and 7 percent and that the consumer price index will rise 2.5 to 2.6 percent.

Rosy prospects for economic growth in China and other countries worldwide could see a strong rebound in energy prices, said Wang Hanfeng, an analyst at CICC. Investors should increase holdings in bank, insurance, oil and natural gas stocks, he added.