China's economic growth is seen hitting a lower target of 9.4 percent, Goldman Sachs Group Inc. said in its latest note to clients Tuesday as Premier Wen Jiabao's efforts to curb rising inflation will impact on domestic growth.

Goldman Sachs has joined Credit Suisse Group AG, JPMorgan Chase & Co., ING Groep NV and Daiwa Securities Group in paring down their estimates for China this month.

"We see little room for further rate hikes," Goldman analysts Yu Song and Helen Qiao wrote in a note to clients today. "Even if the State Council decides to keep the tightening bias in monetary policy, we see stronger opposing forces for rate hikes since such measures will have a universal impact across sectors."

Premier Wen's efforts to tighten the flow of bank credit pulled down the performance of China's benchmark stock index in early morning trading by 15.4 percent treading a high of 22,747.41 and a low of 22,631.13.

Current Account Surplus

China's trade earnings reached US$29.8 billion in the first three months of the year, the State Administration for Foreign Exchange (SAFE) said in a report released Tuesday.

This is lower than the US$102.1 billion seen in the fourth quarter of last year, according to revised state agency data.

Net inflow of direct investment into China, the world's second-largest economy, totaled US$42.6 billion in the first quarter compared with US$39.1 billion in the last three months of last year.

The US and European demand for Chinese exports recovered after the global financial crisis.

While rising demand for Chinese goods boosts growth, it also means the central bank has to work harder to control the value of the yuan and to stem the flood of liquidity, which has been fuelling inflation.