Market-stabilizing policies right call, says Premier Li

Chinese Premier Li Keqiang speaks at the Central Urban Work Conference in Beijing, Dec 22, 2015.[Photo/Xinhua]

Policies used to tide over last year's unusual volatility in the stock and exchange market were a right call, said Premier Li Keqiang in his first appearance after the Spring Festival holiday.

Those market-stabilizing measures, consisting with international practice, defused some "bombs" over a period of time and warded off systematic financial risk, said Premier Li at an executive meeting of the State Council, according to Xinhua.

However, authorities in charge should also draw lessons from the experience, address internal management issues and implement initiatives and take both timely and effective approach, added the Premier.

The recent sharp decline in the international equity market has brought new challenges and uncertainties to China's economy, but it is also a test of tenacity, he said. "China's economy has proved stronger and stronger in the time of challenges."

A-share market edged down on Monday as trading resumed after the weeklong holiday. The benchmark Shanghai Composite Index slid 0.7 percent to close at 2,746.20 after losing as much as 2.8 percent during early morning trading.

Latest statistics showed national unemployment rate rose to 4.99 percent in January after the country expanded the survey from 31 major cities to all prefectural-level cities, said Li, adding that such level is not easy to achieve given that China has a population of more than 1.3 billion.

"As long as the labor market remains stable, the economic fundamentals are stable," said Premier, according to Xinhua.

Li also urged all departments to be more cautious and efficient. "China's economy has great potentials, as its high savings rate leaves much room for resilience. Once the economic growth shows signs of slipping below the reasonable range, we should take decisive moves when needed."

China's GDP grew by 6.9 percent last year, the lowest since 1990, according to the National Bureau of Statistics.

New yuan-denominated lending in January jumped 71 percent year-on-year to 2.51 trillion yuan ($385 billion), official data showed on Tuesday.