Economy tackling challenges, growing within reasonable range: Central bank governor

Zhou Xiaochuan, governor of the People's Bank of China, the central bank, speaks at seminar on financial inclusion held at the World Bank headquarters in Washington on Friday during the 2016 IMF/World Bank annual meeting while Queen Maxima of the Netherlands looks on. [Photo by Chen Weihua/China Daily]

China is resolving hidden risks in the economy while making sure it operates within reasonable range, according to the nation's top financial leaders.

Zhou Xiaochuan, governor of People's Bank of China, said that with some positive signs recently appearing, the economy is growing within reasonable range amid restructuring process, and is making great contribution to support the global recovery process.

Zhou made the comments at the Finance Ministers and Central Bank Governors Meeting in Washington on Thursday, where G20 ministers discussed challenges posed to global economic growth and solutions to tackle money laundering and tax avoidance, according to a press release by the Ministry of Finance on Friday.

Yi Gang, vice-governor of the central bank, echoing Zhou's confidence said the economy is expected to hit the annual target of 6.5 to 7 percent growth range.

The government is attaching great importance to resolve some of key challenges while ensuring growth, according to Zhou, referring to challenges in the real estate sector, excessive credit growth and rising debt issues.

Zhou's comments come after 20 cities announced measures since the start of this month to manage risks related to real estate sector, including improving mortgage down payments and purchase restrictions.

Zhou said countercyclical credit policy could play its role when the economy is facing overcapacity problems, but the overall credit growth in China is expected to be reined in the future, as the global economy is recovering and is on the path back to normalization.

While addressing China's deleveraging process, Lou Jiwei, the finance minister, said that China has been shifting gear and is moving away from massive stimulus, and deleveraging is high priority.

China is on track to press ahead with supply-side reform to sustain medium-to-long sustainable growth, said Lou.

The high-level meeting is the fourth and the last high-level meeting while China holds the rotating presidency of the G20 this year.