Li Keqiang, China’s premier (Photographer: Brendon Thorne/Bloomberg)

China's Premier Li Reiterates Prudent Monetary Policy, Stability

(Bloomberg) -- China’s Premier Li Keqiang said the nation will continue with its prudent monetary policy and will be able to maintain stability in the financial markets, according to China Central Television.

The nation will prioritize preventing financial risks while continuing with market-based, managed floating exchange rate, Li said in a meeting with International Monetary Fund Managing Director Christine Lagarde, according to the state-run television channel. China will keep the yuan at a reasonable and equilibrium level, Li said.

China's Premier Li Reiterates Prudent Monetary Policy, Stability

Li Keqiang meets Christine Lagarde on May 14.

Photographer: Etienne Oliveau/Getty Images

China’s leaders have pledged a harder push to rein in risks, though the renewed focus on cutting financial leverage has yet to make a major dent in the nation’s surging credit demand. The Communist Party’s top 25-member politburo, including President Xi Jinping, gathered last month to discuss “safeguarding national financial-market security,” initiating a clampdown that has mainly focused on shadow banking and roiled stock and credit markets.

The nation will strike a balance between financial market stability, gradual deleveraging and stable economic growth, CCTV cited Li as saying.

To contact Bloomberg News staff for this story: Jing Yang in Shanghai at jyang251@bloomberg.net.

With assistance from Jing Yang