MNI Policy: China Keeps Yuan Stable, Won't Depreciate: Premier

     BEIJING (MNI) - China is "fully capable" of keeping yuan basically stable

on a reasonable and balanced basis, and won't seek to boost exports through

depreciating the currency, Premier Li Keqiang said at the Summer Davos in

Tianjin on Wednesday.

     While noting global economic and trade conditions have changed, and there

are anti-globalization backlash, Li said multilateralism is the solution and

"inclusive" economic integration is gaining more strength.

     Growth in new drivers, such as consumption, has exceeded policymakers'

expectations, even as changing trade conditions still present challenges, Li

said without directly mentioning the trade spat with the U.S. 

China will create conditions for stable forex keep market-based reform and

volatilities in yuan exchange rate not intended by the Chinese government, Li

said. 

     China will keep prudent monetary policy, stabilize leverage, keep

reasonable liquidity, and stop the slide in infrastructure investment without

repeating the old path of relying on investment, Li said. 

     China's leverage ratio growth has slowed in the first half, and its

structural deleveraging will continue to be pushed forward, Li said in answer to

a question after the speech.

--MNI Beijing Bureau; +86 10 8532 5998; email: william.bi@mni-news.com

--MNI Beijing Bureau; +86 (10) 8532 5998; email: marissa.wang@marketnews.com

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