The explosive credit growth over the past few months has propped up the sagging economy, but it may also plant the seed for an asset price bubble and inflation, according to experts.

"The positive news for the first quarter is the strong loan growth," Wang Tao, head of China Economic Research with UBS Securities, said at a forum on Wednesday. "It is a sign that China's growth relies more on credit rather than fiscal stimulus."

China's annualized GDP growth dropped to a 10-year low of 6.1 percent in the first quarter, on poor foreign demand and weak domestic investment.