The nation will prioritize preventing financial risks while continuing with market-based, managed floating exchange rate, Li said in a meeting with International Monetary Fund Managing Director Christine Lagarde, according to the state-run television channel. China will keep the yuan at a reasonable and equilibrium level, Li said.
According to Bloomberg, China’s leaders have pledged a harder push to rein in risks, though the renewed focus on cutting financial leverage has yet to make a major dent in the nation’s surging credit demand. The Communist Party’s top 25-member politburo, including President Xi Jinping, gathered last month to discuss “safeguarding national financial-market security,” initiating a clampdown that has mainly focused on shadow banking and roiled stock and credit markets.
The nation will strike a balance between financial market stability, gradual deleveraging and stable economic growth, CCTV cited Li as saying.