China's Central Bank has said it will continue to restrict the supply of money and loans as its main weapon against an overheated economy.
In its latest report, the People's Bank of China said the economic growth is forecast to proceed at a "slightly slower" pace, thought it will remain on a fast and stable track.
CRI's Dan Dan reports.
Reporter:
 The Chinese government has placed a lot of importance on rapid growth in fixed asset investment, as well as an excessive supply of money and loans, saying they threaten the economy.
In the first half of this year, fixed assets investment increased by 30% year on year while RMB loans grew by more than 87% of the total planned for the entire year.
Though the rapid growth in fixed assets investment and loans has promoted China's economic development, they also carry many hidden difficulties.
A number of Chinese government departments are currently working to prevent this phenomenon from continuing.
This includes issuing regulations to limit foreign investment in real estate, with the aim of controlling the construction of factories, luxury apartments and other projects.
The central bank has also raised reserve ratio for commercial banks by 0.5 percentage points. The move will restrict the lending capacities of those banks.
Liu Lida with People's Bank of China says these measures have already had an impact.
“The recent situation shows we are gradually reigning in the trend towards an excessive supply of money and loans. The growth rate in June turned out to be lower than in May. Our next step will be to make further adjustments to enlarge consumption, lower the rate of saving and increase imports.”
Liu adds that current domestic consumer prices remains stable, while the price of real estate and stocks keeps rising.
Liu says there's still potential danger for inflation in China.
Other economic experts suggest an interest rate hike will help to reduce fixed assets investment and the growing number of loans.
Zhao Xijun with China Renmin University holds this view but says this measure may have limited effects.
“The role that interest rate will play is limited by many practical conditions. I think we can have a try, but we should not rely on it as the only way out. Anyway, there are still many other financial measures.”
Apart from these measures, China's Ministry of Land and Resources has imposed stricter controls on land.
Ministry officials believe the move will not only restrain the too rapid growth in fixed assets investment, but also protect arable areas and the legitimate rights of farmers.
Dan Dan, CRI news.
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