Sept. 18 (Bloomberg) -- China will delay approval of some local government investment projects in its fastest growing regions to cool the economy and reduce the risk of overheating.

The government wants to ``control investment growth that is expanding too fast in some regions,'' the National Development and Reform Commission, the nation's top planner, said on its Web site late yesterday.

China's spending on factories, equipment and property climbed 26.7 percent in the first eight months of 2007. The government is trying to prevent the pace of growth from fanning inflation without triggering a sudden slowdown that may cost jobs and leave factories idle.

``The government wants to send out a signal to local governments to curb investment from rebounding,'' said Qi Jingmei, a researcher at State Information Center, an affiliate of the NDRC. ``The government is unlikely to crack down on investment plans altogether, especially in poor regions, because economic growth is needed in those areas.''

Of China's provinces, Fujian in the south east posted highest investment growth of 48.7 percent in the first seven months of the year, according to the statistics bureau. Anhui in central China had a 47.6 percent jump in investment, followed by southwestern Guangxi in western China with 43.7 percent.

In 2004, China tightened land purchase and lending requirements and limited expansion in aluminum, steel, autos and textiles -- industries that it considered had excessive capacity.

Less Developed Regions

``Currently, several regions are less developed and need to speed up economic expansion, but they must realize that reaching prosperity is a long-term, strenuous and complicated process and can't be achieved overnight,'' the NDRC said.

The measures the NDRC is considering would complement efforts to cool lending. The People's Bank of China raised its benchmark interest rate for the fifth time this year last week.

The NDRC statement didn't mention any specific measures the government plans to take.

China's inflation accelerated to 6.5 percent in August, the highest in almost 11 years, and money supply expanded by 18.1 percent last month, above the central bank's annual target of 16 percent, according to government data.

To contact the reporter on this story: Li Yanping in Beijing Yli16@bloomberg.net

Last Updated: September 18, 2007 00:48 EDT