Beijing: The International Monetary Fund (IMF) report released on Wednesday presented facts regarding China’s economy. According to the report, the credit and asset price behaviour is disconcertingly hot in China.

Projecting a 9.6 percent growth for China in 2011, the IMF report laid emphasis on the point that the country's economy is facing increasing pressure from credit and asset bubbles.

"There are mounting concerns about the potential for steep corrections in property prices and their implications," the IMF said in its annual World Economic Outlook report.

Even though the government had taken measures like increasing banks' reserve requirements and raising interest rates to fight inflation, credit growth remained high compared with the run-ups to previous credit booms and busts, it said.

Still, China along with India will continue its solid growth, despite concerns over rising oil prices and the fallout from the Japanese earthquake, according to the report.

The world's third largest country in terms of area has set annual economic growth target at 8 percent for 2011 and 7 percent for the next five years.

China, which grew by 10.3 percent in 2010, may witness a rise in inflation to five percent in 2011, as the economic engines shift to a growth model that favours domestic consumption over export-led growth, according to the report.

Inflation has been one of the major concerns for both consumers and the government, which released RMB 4 trillion at home as economy stimulus measures after the global financial crisis.

Last week, China's central bank announced raise in interest rates for the second time this year. The move came as inflation surged to 4.9 percent in February, surpassing the government's target of 4 percent.

Agencies