A major State-owned bank has warned that some local governments might supercharge investment in the name of new urbanization.

In its research report released on Tuesday, Agricultural Bank of China warned of the danger of supercharged investment as a new government takes office this year and new urbanization becomes a policy priority.

"The leadership reshuffle at the local government level usually brings an impulse for investment. And the advance of new urbanization might lead some local governments to over-invest in the name of new urbanization," the report said.