China's Xi urges financial risk prevention while seeking stable growth
(Adds comments from Xi, context)
BEIJING, Feb 23 (Reuters) - China should seek stable
development of its economy while not forgetting to fend off
risks to its financial system, Chinese President Xi Jinping
said, state news agency Xinhua reported on Saturday.
China's economy is growing at its slowest pace in almost 30
years, spurring policymakers to bolster growth by easing credit
conditions and cutting taxes.
"It is necessary to focus on preventing risks on the basis
of steady growth, while strengthening the countercyclical
adjustment of fiscal policy and monetary policy and ensuring
that the economy operates in a reasonable range," Xi said.
Preventing and resolving financial risks, especially
systemic financial risks, is a fundamental task, the agency
cited Xi as telling a study session for senior Communist Party
officials on Friday.
On Wednesday, Premier Li Keqiang reiterated that China would
not resort to "flood-like" stimulus such as it unleashed in past
But after a spate of weak data, investors are asking if
Beijing needs to speed or boost support to reduce the risk of a
Until now, China has refrained from cutting benchmark
interest rates to spur the slowing economy, which would ease
financing costs but risk adding to a mountain of debt.
To free up more funds for lending to small and private
businesses, the central bank has cut the reserves that banks
need to set aside five times in the past year.
Last month, Chinese banks made the most new loans on record,
a total of 3.23 trillion yuan ($481 billion). A central bank
official said previously that no credit floodgate had been
opened, and the lending jump showed recent easing steps were
China's financial sector must serve the real economy, Xi
said, but stable growth and risk prevention must be balanced.
($1=6.7112 Chinese yuan renminbi)
(Reporting by Ben Blanchard, Judy Hua and Ryan Woo
Editing by Jacqueline Wong and Clarence Fernandez)
First Published: 2019-02-23 07:19:48
Updated 2019-02-23 08:29:43
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.