A new State Information Centre report carried by state media has played down fears of overheating in the economy. The National Development and Reform Commission said key economic indicators showed no significant changes in April and March and that a "relatively stable base" would persist in the near future. The report identified excessive credit growth, soaring property prices and the rapid increase in fixed-asset investment by local governments as the main risks, but said inflationary pressure remained mild, with the consumer price index rising only 1.2% in April. The report is at odds with a number of recent government measures introduced to slow key sectors in response to faster than intended growth of 10.3% in the first quarter. Official figures show that in the first four months of the year, new loans hit US$197.1 billion, almost two-thirds of the US$312 billion target set for the whole year, and urban fixed-asset investment grew 29.6%.
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