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WB chief lauds govt’s efforts to stabilize capital and money markets

Updated: Jul 17,2015 9:36 PM

During his meeting with Premier Li Keqiang on 16 July, World Bank Group President Jim Yong Kim applauded measures taken by the Chinese government to stabilize China’s capital and money markets. Kim was quoted as saying that he will send three main messages during his visit to China. First, he believed that the steps taken by the Chinese government to stabilize the capital market are appropriate. Second, the 7% growth of the Chinese economy in the second quarter is a big share of the overall global growth and could well be the envy of other countries. Third, the Chinese government has a solid commitment to continuing reforms.

Li Keqiang said that China would continue to press ahead with reforms to drive the Chinese economy and ensure that it operates within an appropriate range.

The Chinese government eyes for continued reforms

Former World Bank President Robert Zoellick spoke positively of China’s recent efforts to stabilize the capital market. Jim Yong Kim, Zoellick’s successor, showed a clearer stance when he met with Premier Li on 16 July. He said to the Chinese premier, “I share my predecessor’s view and appreciate your efforts.”

Kim said that he was the first guest from an international financial institution to visit China after the fluctuations in the Chinese stock market. “I am deeply impressed by China’s commitment to continuing reforms while responding to the market fluctuations.”

Premier Li made it clear to President Kim that the recent measures taken by the Chinese government to stabilize the capital and money markets are aimed at creating a fair, open, transparent, and long-term, stable environment for the market-based reforms. China will continue to advance reforms to drive the Chinese economy and ensure that it operates within an appropriate range.

Healthcare reform, if accomplished in a country of 1.3 billion people, will be a miracle in human history

An important part of President Kim’s China visit is to discuss with three Chinese government departments ways to advance healthcare reform in the country. According to Kim, China has made great achievements in healthcare reform in recent years, and is in the middle of a critical period of opportunities.

World Bank experts have made a field study in the city of Sanming, Fujian province, where an open and transparent system has been set up to redistribute medical revenues, and where effective communication has been carried out with all stakeholders, including members of the general public. This has enabled hospitals in Sanming to focus more on providing better and high-quality services to the public instead of generating more revenues.

Dr. Kim believed that China has a unique opportunity to build a high-quality and low-cost healthcare system to benefit its 1.3 billion people. He expressed the World Bank’s readiness to offer financial support and help make and implement plans to gradually extend successful experience to more places in the country.

Premier Li thanked President Kim and World Bank experts for making local studies in China’s provinces and cities. He added that a major goal of China’s modernization drive is to make the Chinese people healthier, which in turn will help drive sustained economic growth. He reaffirmed the readiness of Chinese government departments to work closely with the World Bank in this area.

According to the Premier, China is working on its own solution to healthcare reform, a tough issue for all countries indeed. The aim is to put in place a widely accessible healthcare system that benefits everyone, that allows diseases to be prevented effectively or treated in the early stage. The Premier said that if this could be done in a big developing country with 1.3 billion people, it will be a miracle in human history.

Appropriate measures have been taken to keep market expectations stable and ensure sound development of the market

One day prior to the meeting, figures for the first six months of the Chinese economy were released. So China’s economic situation was also discussed during the meeting. Premier Li said that the government’s efforts to strengthen targeted regulation and structural reform have begun to pay off since the latter half of last year. In the second quarter, GDP grew by 7%, and other major economic indicators also picked up growth in recent months. Given the sluggish world economy, the achievement is truly not easy.

The Premier said that China will work to ensure that its economy remains stable and continues to make progress. Reforms and greater openness will be promoted. The unique strength of the Chinese economy, its resilience, great potential and ample space for adjustment will be fully tapped.

“Since last year, we have taken measures to promote mass entrepreneurship and innovation by streamlining administration and delegating government power. As a result, every day, over 10,000 new enterprises are beingset up, and surveyed unemployment rate has been kept at 5%-5.1%.” Premier Li noted, “When employment is stable, economic performance will be stable. And that in turn will provide the necessary environment and the basis to further advance healthcare and other reforms.”

Premier Li concluded by emphasizing that on the road ahead, there might be risks and challenges. The government will never get complacent. In face of challenges, it will take appropriate measures to keep market expectations stable. To securesound development, he said, “we need to deepen reforms so that market forces play a decisive role in resources allocation. This is not at odds with a better play of the role of the government.”