Retail sales in urban areas jumped 16.3 percent in May from a year earlier and those among rural households increased 15 percent, today's statement said.

China's retail sales will grow about 14 percent this year, the Ministry of Commerce said this month. The country will probably surpass Japan by 2010 to become the world's second- largest consumer goods market, Chinese Vice Premier Wu Yi said on May 24.

Rising consumer spending is boosting investment among retailers. Belle International Holdings Ltd., China's biggest retailer of women's shoes, raised HK$10 billion (US$1.3 billion) in a share sale last week to add more outlets in China.

Growth in retail sales still lagged behind those of exports and fixed-asset investment. China's overseas sales jumped 28.7 percent in May from a year earlier and urban fixed-asset investment climbed 25.5 percent through April.