IMF Cuts China Growth Outlook, Urges Cap on Social Financing

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The International Monetary Fund cut its growth forecast for China this year to 7.75 percent from a previous 8 percent, citing a weak world economy and exports, and said the country's priority should be on reining in social financing growth.

(Read More: Outlook for China's Economy Just Keeps Getting Worse)

The IMF also recommended China conduct fiscal stimulus if growth falls below the IMF's forecast, David Lipton, the first managing director of the IMF, told a media briefing on Wednesday.

(Read More: Is China Really Mullling a Lower Growth Forecast?)

China's total social financing has expanded at double-digit rates in recent months, leading to concerns that the country's fast credit supply may fuel inflation in future.