Premier Li Keqiang said on Aug 28 that the country’s economy is growing at a reasonable pace and, despite growing pressure, the government can handle the risks.
During a State Council meeting, Premier Li Keqiang said the Chinese economy is facing new pressure, as international market instability has increased the uncertainties around the global economic recovery. The impact on China’s financial market and imports and exports has also deepened.
The Chinese stock market has entered a volatile period since mid-June, and the Premier has sent a strong signal of confidence to stabilize the market during the meeting, by affirming the efficacy of China’s series of efforts. He stressed the role of an open, transparent capital market but said risk management needs to be improved to prevent regional or systemic risks.
On the foreign exchange sphere, the Premier reiterated earlier his remarks that there’s no basis for continued depreciation of the yuan following its devaluation on Aug 11, and that the yuan will stay basically stable at a reasonable and balanced level.
On the front of macroeconomic managements, the meeting concluded that the country will continue its proactive fiscal policy and prudent monetary policy. As previous measures like cuts in the reserve requirement ratio, interest rates, taxes and fees are already paying off, Li said China would enact more targeted and responsive macro-regulation to offset downward economic pressure. That includes more robust reform and innovation efforts to energize the market, and more effective delivery to secure positive momentum for growth.