China's central bank moved Friday to soak up funds from the financial system, setting aside more deposits as reserves for the second time in a month to placate the fastest-growing economy after loan growth accelerated and property prices rose.

The reserve requirement will raise 50 basis points, or 0.5 percentage point, effective Feb. 25, the People's Bank of China posted on its Web site today. However, the current level is 16 percent for big banks and 14 percent for smaller ones.

"This is all about controlling the boom, so that we don't have a bust in the second half", said Stephen Green, head of China research at Standard Chartered Bank Plc in Shanghai.

Investors' concern about investment increases in China, and what action the government may initiate to prevent or deflate them, has mounted this year.

The central bank posted yesterday that it wanted to steadily mobilize monetary conditions from a "crisis mode" after gross domestic product reported a rise of 10.7 percent in the fourth quarter, the fastest pace in two years.

Economic data this week revealed that property prices across 70 cities soared by 9.5 percent in January compared to the previous year, exports jumped and producer price inflation fetched momentum. Bank lending of 1.39 trillion Yuan topped the total for the previous three months combined.