China’s economic fundamentals are strong and it has sufficient policy tools to guard against systemic risks, central bank governor Yi Gang said, as the IMF cautioned that the world economy is under threat from trade tensions and heavy debt burdens.
“In 2017, China’s non-financial leverage ratio increased slightly, the corporate leverage ratio declined somewhat and leverage in the financial sector was brought under control,” Yi said on Saturday during annual meetings of the International Monetary Fund and World Bank in Washington, according to Xinhua.
Beijing has prioritised containing financial risks, after years of debt-fuelled growth put China’s economy on what the IMF previously called a “dangerous and unsustainable” trendIn statements carried on the People’s Bank of China website, Yi reiterated recently announced measures to open the financial sector, which would “be implemented either in the next few months or by the end of this year”.