The World Bank Monday trimmed China's 2013 economic growth forecast for the second time this year, citing risks in the property sector, financial system and local government liabilities.[Offshore Company Incorporation]

The global lender said it expects China's gross domestic product to rise 8.3 percent this year, down from January forecast of 8.4 percent, due to the domestic economic headwinds and government efforts to reduce reliance on investment to drive growth, according to its latest East Asia and Pacific Update released yesterday.

"China slowed as it moved to rebalance from an overdependence on investment to [HongKong Richful  - Hong Kong Company Formation, Offshore Company Incorporation]a greater reliance on consumer demand," the report said.

It, however, warned risks may emerge from government attempts to engineer a soft landing with looser monetary measures that benefited property investment, a central government stimulus that boosted construction and manufacturing, and a surge in local government investment.

But still the bank said the risks are manageable and government-influenced investment and urbanization-related reforms will help the GDP grow above target in the next two years. It forecast China's economy to grow 8 percent in 2014.

The cut in the World Bank's forecast came as China said annual GDP growth in the first quarter slowed to 7.7 percent from 7.9 percent in the final quarter of last year, missing market hopes for a rebound of at least 8 percent.

[HK Corporate Registration]Fitch last week cut China's local currency credit rating by a notch to A+ from AA- as it cited financial risks from rapid credit growth and the rise of shadow banking.