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Li: Nation capable of handling risk

By Li Xiaokun | China Daily | Updated: 2015-07-11 07:45

Despite the recent stock market turbulence, China is on course to stabilize the situation and fulfill its economic targets, according to a seminar on China's economic circumstances on Thursday.

Many of China's economic indexes have started to show recovery in the second quarter, said Premier Li Keqiang at the seminar in Beijing, ahead of the official release of second-quarter data by the National Bureau of Statistics scheduled for July 15.

"The vitality and momentum of development have increased, effectively boosting confidence in various circles," said the premier, who also said last week in France that China can achieve its annual growth target of about 7 percent.

On Monday, the NBS said economic indicators in recent months suggested the economy has passed the worst period.

Still, the premier said that the foundation of the stabilization of the economy needs to be further consolidated, "especially given increasing variables in the global economy".

The premier added that China has the capability and confidence to prevent regional and systemic risks and will push forward stable development, openness and transparency of the capital market.

Many stocks in China's market surged by the daily limit on Thursday and Friday, after a sharp fall since June 15.

"Though there will be various challenges and risks in our way, we will never let down our guard and we have the capability and confidence to prevent regional and systemic risks," the news release on Friday quoted Li as saying.

Xiang Songzuo, chief economist of Agricultural Bank of China, said such a move is welcome and imperative.

"The performance of the stock market is closely related to business fundraising and citizen consumption," he said. "A healthy capital market will add confidence and stability to the development of the real economy."

Huang Yiping, deputy dean of Peking University's National School of Development and a member of the Monetary Policy Committee, said. "It is highly likely that the Chinese economy will get better in the third quarter."

lixiaokun@chinadaily.com.cn

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