GDP in the first quarter was up 10.6 per cent from a year earlier.

The sources had no information about the growth rate for the second quarter alone. Economists polled by Reuters expect a reading of 10.4 per cent, but the figure provided by the sources suggests the outcome will be lower, possibly 10.1 per cent.

The National Bureau of Statistics will release the data on Thursday at 0200 GMT (10am Singapore time).

The officials cautioned that the provisional estimate is subject to last-minute revisions, as has happened sometimes in the past.

If confirmed, the figure would paint the picture of an economy that is slowing gradually under the impact of a credit tightening campaign and weakening net exports.

GDP growth in all of 2007 was revised up in April to 11.9 per cent from 11.4 per cent. But the statistics office did not update its quarterly growth rates, including the official fourth-quarter reading of 11.2 per cent.

Another half-year of double-digit growth would provide further evidence of the resilience of the economy, which has had to deal with the worst snowstorms to have swept southern China in 50 years; the impact of May's devastating earthquake in Sichuan; and severe flooding last month across southern and eastern China.

However, with economic headwinds strengthening, some researchers and officials believe the time has come for the authorities to relax their policy stance to avert the risk of a sharper slowdown over the coming months.

Reports are circulating among think-tank researchers that China's top economic leaders will meet this week to set the direction of policy for the rest of 2008. -- REUTERS