Market-stabilizing policies right call: Chinese premier

(From China Daily)

Policies used to tide over last year’s unusual volatility in the stock and exchange market were a right call, said Premier Li Keqiang in his first appearance after the Spring Festival holiday.

Chinese PM Li Keqiang

Chinese PM Li Keqiang

Those market-stabilizing measures, consisting with international practice, defused some “bombs” over a period of time and warded off systematic financial risk, said Premier Li at an executive meeting of the State Council, according to Xinhua.

However, authorities in charge should also draw lessons from the experience, address internal management issues and implement initiatives and take both timely and effective approach, added the Premier.

The recent sharp decline in the international equity market has brought new challenges and uncertainties to China’s economy, but it is also a test of tenacity, he said. “China’s economy has proved stronger and stronger in the time of challenges.”

A-share market edged down on Monday as trading resumed after the weeklong holiday. The benchmark Shanghai Composite Index slid 0.7 percent to close at 2,746.20 after losing as much as 2.8 percent during early morning trading.

Latest statistics showed national unemployment rate rose to 4.99 percent in January after the country expanded the survey from 31 major cities to all prefectural-level cities, said Li, adding that such level is not easy to achieve given that China has a population of more than 1.3 billion. Read more

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