The possibility of China stepping up its policy tightening programme has increased after the country reported a 48.5% rise in exports and close to record growth in property prices.
Customs bureau data show China's exports saw their largest jump in six years, suggesting the economy is withstanding the sovereign debt crisis in Europe and remains at risk of overheating.
Government data also show a 12.4% rise in property prices across 70 cities.
The Shanghai Composite share index fell 0.6% in afternoon trading, on fears the Government will step up policy tightening.
China International Capital Corporation (CICC) says the leap in exports could be a blip before European demand wanes, while falling property sales signal a looming slowdown in investment which may cool the world's third largest economy.
The figures "may be the good news before the bad news as the European debt crisis curbs the region's demand and property market corrections drag on investment," CICC economist Xing Ziqiang told Bloomberg.
"Exports may decelerate rapidly later this year and economic growth may slow to around 7.5% in the fourth quarter."
China's annual growth was 11.9% in the first quarter of 2010.
