BEIJING, Feb 1 China's overall fixed-asset investment growth is likely to slow to 22 perc

BEIJING, Feb 1 (Reuters) China's overall fixed-asset investment growth is likely to slow to 22 percent this year from 24 percent in 2006 due to government tightening measures, a think-tank of the National Development and Reform Commission (NDRC), the country's top planning agency, said on Thursday.

In a report published in the official China Securities Journal, the think-tank also suggested that the yuan's exchange rate should be kept stable in 2007.

''The yuan's value should not rise significantly in the near future, and the government should leave no room for yuan speculation,'' the report said.

It also proposed a gradual, slow and controllable approach to opening China's capital account in order to learn the lessons from Asia's 1997/98 financial crisis, when a sudden exodus of footloose global capital sent regional currencies tumbling.

The report said Beijing would launch new policies in the areas of environmental protection and energy efficiency to curb investment, while keeping a grip on credit and land supply.

If capital spending accelerated during the year, the government would introduce further cooling measures, it said.

''If investment and credit growth rebound in 2007, the possibility cannot be ruled out that the central bank will raise benchmark deposit and lending rates, which would greatly dampen investment activity and enthusiasm,'' the report said.

In addition, the report forecast retail sales in 2007 to rise about 13 percent to 8.6 trillion yuan ($1.1 trillion).

China's export growth will slow to about 15 percent this year from 27.2 percent in 2006 as external demand weakens and domestic curbs on some export sectors kick in, the report added.

Reuters SBA VP0716