Li reassures investors of China's property market

DAVOS, Switzerland, Jan. 21 -- Chinese Premier Li Keqiang on Wednesday ruled out the possibility of a systematic financial risk in China, saying the recent fluctuations in its real estate market were normal.

Li said so when meeting with representatives of the International Business Council of the ongoing World Economic Forum (WEF) in the Swiss mountain resort of Davos.

Adjustments in China's real estate market in a certain period are "normal," Li said, citing reasons including the country's steady urbanization drive which will unlock huge housing potential, and its deepening efforts in rebuilding the sprawling and dilapidated shantytowns.

"The hard housing demand in China's property market will be durative," Li reassured. "It will drive the development of related industries and product supply."

Li was commenting on the slowdown seen in China's once-sizzling property market since the beginning of last year, which has triggered concerns about a burst of the real estate bubble in the country.

During a State Council meeting in last October, Li vowed to stabilize housing consumption, improve affordable housing projects and relax lending rules, indicating that the government is loosening its grip on property market policies.

In Davos, Li also said that the Chinese government attaches great importance to shadow banking and has taken related measures to put the problem under its supervision.

"The Chinese government is capable of ensuring that no regional or systematic financial risks will happen in the country," he stressed.

Over 2,500 participants from more than 140 countries, regions, international organizations, academia, the civil society and media are attending this year's WEF winter meeting, which is convened under the theme "The New Global Context."