Chinese central bank governor says economy strong, financial leverage under control

BEIJING (Reuters) – China’s economic fundamentals are strong and the country has sufficient policy tools to guard against systemic risks, People’s Bank of China Governor Yi Gang said on Saturday, according to Xinhua.

“In 2017, China’s non-financial leverage ratio increased slightly, the corporate leverage ratio declined somewhat and leverage in the financial sector was brought under control,” Yi said during annual meetings of the International Monetary Fund and World Bank in Washington, according to Xinhua.

Beijing has prioritized containing financial risks, after years of debt-fueled growth put China’s economy on what the IMF previously called a “dangerous and unsustainable” trend.

In statements carried on the PBOC website, Yi reiterated recently announced measures to open the financial sector, with measures to “be implemented either in the next few months or by the end of this year”.

The meetings in Washington come as the United States threatens $150 billion in tariffs on Chinese imports to try to force changes in Beijing’s industrial policies, which the United States says are aimed at acquiring American intellectual property.

U.S. Treasury Secretary Steven Mnuchin said on Saturday he may travel to China, a move that could help ease tensions between the world’s two largest economies.

“China will continue to support multilateralism and an open and rules-based multilateral trade system, advocating cooperation and dialogue,” Yi said, according to the PBOC website.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.