China’s premier said his government would not resort to “massive” stimulus measures as Beijing continued to address financial risks in the world’s second-largest economy. “We have identified risks in some sectors and dealt with them appropriately,” Li Keqiang said at the World Economic Forum’s annual summer session in Dalian.
Mr Li’s government is in the midst of a crackdown on China’s financial sector that began in earnest late last year with the imposition of foreign exchange controls in a bid to stem capital flight. More recently, the heads of some of the country’s most aggressive private sector financial groups have received industry bans or been detained by anti-corruption investigators.
Mr Li argued that China was well placed to maintain strong economic growth, citing relatively low government debt, high savings rates and aggressive provisioning by banks. “We will continue to implement a proactive fiscal policy and prudent monetary policy,” the premier said. “We will not resort to massive stimulus measures.”
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