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China policy makers see steady growth, stable outlook in policy views

Published 03/20/2016, 06:12 PM
Updated 03/20/2016, 06:13 PM
China policymakers comment on economic outlook

Investing.com - China will maintain economic growth above 6.5% in each of the next five years, Xu Shaoshi, chairman of the National Development and Reform Commission, said at a forum Sunday, one of several policy statements made by leadership at the weekend on the economic outlook.

"China's economic growth will continue to develop in a stable and healthy manner," Xu said at the China Development Forum.

"Over the next five years, our economic growth will keep above 6.5% each year. We will strengthen coordination at the forefront of fiscal policy, monetary policy, industrial policy, investment policy and prices policy."

As well, People's Bank of China Governor Zhou Xiaochuan said China needs to avoid the danger of building up too much short-term debt in foreign currencies, speaking on the sidelines of the China Development Forum.

"In the future we have to avert excessive external borrowing and the currency mismatch that could result. With an eye on the global capital flow situation, we encourage mid- to long-term investment. But we do not encourage short-term speculation."

At the same event, Wu Xiaoling, vice chairwoman of the Financial and Economic Affairs Committee of the National People's Congress and a former deputy governor of the People's Bank of China said the country is working on its financial problems and has them under under control but the side effects of global monetary loosening policies are the big worry, Chinese financial officials said at a forum on the weekend.

"While financial risks do exist in China's banking system, risks from bad debts will not rise systematically," she said.

"What we worry about is the global reliance on monetary loosening."

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