China is resolving hidden risks in the economy while making sure it operates within reasonable range, according to the nation’s top financial leaders.
Zhou Xiaochuan, governor of People’s Bank of China, said that with some positive signs recently appearing, the economy is growing within reasonable range amid restructuring process, and is making great contribution to support the global recovery process, Xinhua reported.
Zhou made the comments at the Finance Ministers and Central Bank Governors Meeting in Washington on Thursday, where G20 ministers discussed challenges posed to global economic growth and solutions to tackle money laundering and tax avoidance, according to a press release by the ministry of finance.
Yi Gang, vice-governor of the central bank, echoing Zhou’s confidence said the economy is expected to hit the annual target of 6.5 to 7% growth range. The government is attaching great importance to resolve some key challenges while ensuring growth, according to Zhou, referring to challenges in the real estate sector, excessive credit growth and rising debt issues.
Zhou’s comments come after 20 cities announced measures since the start of this month to manage risks related to real estate sector, including improving mortgage down payments and purchase restrictions.
Zhou said countercyclical credit policy could play its role when the economy is facing overcapacity problems, but the overall credit growth in China is expected to be reined in the future, as the global economy is recovering and is on the path back to normalization.
While addressing China’s deleveraging process, Lou Jiwei, the finance minister, said that China has been shifting gear and is moving away from massive stimulus, and deleveraging is high priority.
China is on track to press ahead with supply-side reform to sustain medium-to-long sustainable growth, said Lou.
The high-level meeting is the fourth and the last high-level meeting while China holds the rotating presidency of the G20 this year.
Spending High
Chinese spent a record high sum of money on shopping and food during the past week-long National Day holiday, according to the ministry of commerce.
Enterprises in the retail and catering sectors raked in about 1.2 trillion yuan ($180 billion) from Oct 1 to Oct 7, up 10.7%, MOC data showed.
This was the second consecutive year for the “Golden Week” to see over one trillion yuan spending in retail and catering consumption since 1999.
In breakdown, gold and jewelry, home appliances, IT products and new energy vehicles were the most popular goods, while banquets celebrating wedding, birthday and home reunion were the major contributors to catering services.
