“The goal and speed of reform in China’s financial system will not be changed. Of course, we have to take action step by step.” Chinese Premier Li Keqiang made clear in Dalian, responding to the concern of the recent financial market volatility from the international community.
While Chinese Premier Li Keqiang attended the symposium with world top business leaders and renowned media staff at Summer Davos Forum on September 9, he said that after the stock market witnessed abnormal fluctuations in June and July, Chinese government took action to stabilize the financial market and prevent further risks.
“It can be said that possible systemic financial risks have been successfully prevented now. Next task for China is to continue to promote the development of multi-level capital market, adhering to a market-oriented direction and rule of law so that an open, transparent, long-term, stable and healthy capital markets can be fostered. “Li Keqiang stressed.
“Since I took office, the RMB real effective exchange rate has risen by 15 percent.” While talking about RMB devaluation, Li Keqiang mentioned this figure at first place. He said that due to the recent sharp fall of currencies against the dollar in many countries, the trend of the international market made Chinese government adjusting the RMB exchange rate quotation mechanism, but it is only a small fine-tuning.”
Premier Li believes that there is no basis for continued depreciation of RMB, because the Chinese economy is running at a reasonable range. “We have adequate foreign exchange reserves, and trade surplus of goods keeps increasing, which all help the RMB exchange rate to be basically stable at a reasonable and balanced level.” He said. (The Daily Mail – People’s Daily news exchange item)