Premier says China keeps fiscal, financial risks under control
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Chinese Premier Wen Jiabao said Monday China has successfully kept fiscal and financial risks under control while implementing a pro-active fiscal policy and a moderately easy monetary policy.
Wen made the remarks at the World Economic Forum Annual Meeting of the New Champions, also known as the Summer Davos, in north China's port city of Tianjin.
In the past two years, China's budget deficit and government debt have been kept below 3 percent and around 20 percent of the gross domestic product respectively, Wen said.
The asset quality of banks and their ability to fend off risks have improved. Chinese banks' capital adequacy ratio and non-performing loans ratio now stand at 11.1 percent and 2.8 percent respectively, both in the safe territory, he said.
He admitted China is keenly aware of the latent fiscal and financial risks, especially the debt risks of the financing platforms of local governments.
Wen said the country has formulated measures to strengthen the regulation of the financing platforms of local governments and implementation is well underway.
He said the results of the country's stimulus package are good as a whole while some negative impacts are hardly avoidable.
China has done a good job in balancing the need of promoting positive effects with that of reducing negative ones, he said.
