China is "fully capable" of keeping......>

CHINA YUAN: China is "fully capable" of keeping yuan basically stable on a

reasonable and balanced basis, Premier Li Keqiang said at the Summer Davos in

Tianjin on Wednesday.

- China "won't ever" seek to boost exports through cheaper yuan;

- To create conditions for stable forex keep market-based reform; volatilities

in yuan exchange rate not intended by the Chinese gov't;

- China will keep prudent monetary policy, stabilize leverage, keep reasonable

liquidity;

- China to stop slide in infrastructure investment without pursuing old path of

relying on investment;

- China to deepen reform, boost imports and give equal treatments to foreign

companies;

- China's macro leverage not highest, close to EU level;

- China has high savings, but no direct capital-raising channel;

- China's leverage ratio growth has slowed; structural deleveraging will

continue to be pushed forward, Li said.