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Finance and labour ministers gather for a group photo of the G20 Joint Meeting of Finance and LabourMinisters in Ankara, Turkey, September 4, 2015.[Photo/IC]
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ANKARA - The Chinese economy has entered a "new normal" status and the growth rate ofeconomy is predicted to be around 7 percent in the coming 4 to 5 years, said Chinese FinanceMinister Lou Jiwei on Saturday.
Lou said it in a written statement after the 2-day G20 Finance Ministers and Central BankGovernors Meeting in Ankara Turkey.
Zhou Xiaochuan, People's Bank of China governor pointed out in the joint statement that there isno foundation that renminbi will keep devaluing for a long term.
Zhou Xiaochuan stated that the bubble in Chinese stock market keep increasing before June2015. The Shanghai Composite Index has mounted up 70 percent from March to June.
China has been taking measures to prevent its economy from systematic risk including thePBOC providing liquidity to the market through multiple channels.
The measures taken by Chinese government has prevented the stock market from decline inprecipice way and the occurrence of systematic risk.
According to the statement, since the August correction in stock market, the investors leverage instock market has been going down significantly and the real economy has not been impacted.
The reform of the middle price quotation of yuan exchange rate mechanism on August 11 is animportant step to the marketing reform of renminbi rate.
Renminbi was devalued for a certain degree after the reform, but the renminbi was overvalued forreasons like the value-up of US dollar, the generally value depreciate of currency in emergingmarket economies.
"But there is no substantial transformation in the real economy of China and large surplus stillremains in the foreign trade of China, so there is no foundation that yuan will keep devaluing for along term," Governor Zhou said
in the statement.
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