Chinese premier stresses enhancing role of finance in stabilizing macroeconomy

Chinese Premier Li Keqiang speaks with the staff at the investment center of the State Administration of Foreign Exchange, Jan. 30, 2023. Li on Monday paid a visit to the People's Bank of China and the State Administration of Foreign Exchange, where he chaired a symposium. (Xinhua/Li Xueren)

BEIJING, Jan. 31 (Xinhua) -- Chinese Premier Li Keqiang has stressed enhancing the role of finance in stabilizing the macroeconomy and improving financial services to keep the economy performing within a reasonable range.

Li made the remarks on Monday during a visit to the People's Bank of China and the State Administration of Foreign Exchange (SAFE), where he chaired a symposium.

Speaking with the staff at the investment center of SAFE, Li said that, faced with multiple external shocks in recent years, China has kept foreign exchange reserves above 3 trillion U.S. dollars, and the exchange rate of yuan has remained basically stable, providing strong support for foreign trade, the financial sector and the economy.

Recent reform in the financial sector has solidly supported China's economic development, Li noted. Only a good economy will produce a sound financial sector, and only when the financial sector is stable will the economy run steadily, he said.

Improvement and innovations in macro regulation, as well as sticking to the prudent monetary policy, have played a crucial role in ensuring economic stability and serving the real economy, Li said at the symposium, citing loan rate reductions for enterprises and the mild increases in consumer prices.

China has also prevented risks from unusual fluctuations in the financial markets, addressed risks in small and medium financial institutions and property developers, among others, and ensured that no systemic risks arise, he said, cautioning that ensuring financial stability and preventing risks is still an arduous, long-term task.

With a rebound in economic growth underway, the financial system should continue to improve services for the real economy, said the premier.

He called for enhancing financial support to strengthen consumption, investment and economic structure, improving the financial environment for the private sector, especially the small firms, fending off financial risks, and keeping the yuan's exchange rate at a reasonable and balanced level.

Chinese Premier Li Keqiang speaks with the staff at the investment center of the State Administration of Foreign Exchange, Jan. 30, 2023. Li on Monday paid a visit to the People's Bank of China and the State Administration of Foreign Exchange, where he chaired a symposium. (Xinhua/Li Xueren)

Chinese Premier Li Keqiang chairs a symposium during a visit to the People's Bank of China and the State Administration of Foreign Exchange, Jan. 30, 2023. (Xinhua/Li Xueren)

Chinese Premier Li Keqiang chairs a symposium during a visit to the People's Bank of China and the State Administration of Foreign Exchange, Jan. 30, 2023. (Xinhua/Li Xueren)