Chinese premier seeks to quell global markets' China fears
Source: REUTERS / via Yahoo
Data out on Monday showed China's foreign exchange reserves fell by a record amount in August as authorities sought to prevent the currency from sliding further. China did not want to see a currency war, Li added.
"If a currency war does happen, it would only hurt China," Li said. "The continued devaluation of the yuan is definitely not conducive to the currency becoming internationalised. This is not our policy preference." <snip>
A run of soft economic data combined with China's surprise devaluation of the yuan and wild swings in Chinese stock prices have rattled markets around the world over the past month. Li conceded that China's economy was facing downward pressures, but tried to allay concerns that after years of break-neck economic growth it was headed for a hard landing.
"There has been overall stability in China's economic performance in spite of a certain amount of moderation. There's an overall positive trend in spite of difficulties we face," he said, adding that Beijing would "fine tune" its policies to provide more support. <snip>
Li denied that the slew of policy measures introduced by China in recent weeks to curb speculation in stocks undermined pledges that Beijing would open up its capital markets, saying overseas investors were still welcome in the mainland.
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