In a sign that Beijing will monitor economic activities for several more months before deciding on the next step, a senior official of the State Development Planning Commission (SDPC), China's top economic planning body, was quoted by Xinhua news agency as saying: "Macro-control policies have shown obvious impact, so it is not advisable to introduce new, tougher policies for now.''

Wang Yiming, deputy director of SDPC's macro-economics research institute, also pointed out that it was more important now to observe the full effects from the recent measures to curb credit growth and fixed asset investments.

"Even if additional control measures are needed, we have to wait until the effects from existing measures are fully understood,'' he said.

Wang said it would take more time for industries such as steel and cement to cool down, while he expected further slowdowns in fixed asset investments in urban areas in the second half of this year.

The semi-official China News Service Agency also quoted a report by the Development Research Centre of the State Council, a top government think-tank, as saying that China's rapid economic growth will continue to moderate even without further tightening measures.

The report predicted that China's gross domestic product (GDP) will grow at about

9 percent for the full year, consistent with the government's line that it will manage a "soft landing'' for the red-hot economy.