HONG KONG (Yonhap) -- Korea's Doosan Infracore Co. will likely see growth this year in China's excavator market as the world's No. 2 economy increases investment in railway construction, a report said Friday.

"All in all, we are upbeat on Doosan Infracore, as China's excavator market is likely to turn around after bottoming out in the second quarter of 2012," Lee Jae-won, an analyst at Tongyang Securities Inc., said in a report.

Lee explained the Chinese Ministry of Railways recently succeeded in issuing 20 billion yuan ($3.15 billion) in bonds.

"If China takes steps to stimulate the economy, particularly infrastructure investment, including railways, this will be a boon to excavator sales," he said.

Amid uncertainties of the global economy, China's railway investment plunged 45.7 percent on-year in the third quarter of 2011, 26.2 percent in the fourth quarter of 2011, and 41.8 percent in the first quarter of 2012, driving down total infrastructure investment.

While China's excavator market is expected to regain momentum from the third quarter of this year onward, it is estimated to contract 16.5 percent on-year, according to Tongyang Securities.