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China Seeks to Cool Overheated Sectors

A top Chinese official says the government is taking measures to cool down over-investment in its booming economy.

Chinese Vice Minister of Finance Li Yong made the comment Saturday at the annual Asian Development Bank meeting in the southern Indian city of Hyderabad.

He said China in particular is looking to cool down investment sectors such as real estate and construction. He said China will adjust interest rates gradually in the future only if it is necessary.

China raised its yuan lending rates in April by 27 basis points in an attempt to discourage fast lending growth.

The concern about overheating came after the economy expanded by a more than expected 10-point-two percent in the first quarter of this year compared to the same quarter in 2005.

Some information for this report provided by AP and AFP.