G20 will play vital role in stabilizing global financial markets: China

China's vice-finance minister Zhu Guangyao, attends a conference during the 2016 IIF G20 Conference at the financial district of Pudong in Shanghai, February 25, 2016.[Photo/Agencies]

The Group of 20 (G20) will play a vital role in stabilizing the global financial market, Zhu Guangyao, China's vice-finance minister, said Wednesday.

Over the past few years, G20 has achieved success in strengthening global economic governance and improving financial supervision, Zhu said in an interview with China's state television CCTV.

In the face of growing global economic uncertainties, the world has high expectation for the G20 Hangzhou summit, and hopes it would realize the target of building an innovative, invigorated, interconnected and inclusive world economy, Zhu said.

However, the biggest difficulty and challenge facing the G20 Hangzhou summit are uncertainties, Zhu added.

The uncertainties are reflected in differentiation of monetary policies in developed countries. In addition, some major emerging economies, such as Russia and Brazil, also faced difficulties. All these factors, plus geopolitics risks, constitute global economic uncertainties.

Zhu said the G20 Hangzhou summit will put forward for the first time that G20 members should strengthen policy communication on foreign exchange market. Thus, G20 plays a vital role in stabilizing global financial markets, including the forex markets.

When talking about China's currency renminbi, Zhu said the exchange rate of the yuan is decided by China's economic fundamentals firstly and reiterated there is no basis for continued yuan devaluation.

In terms of GDP growth, Zhu said that due to good economic fundamentals and measures for deepening reform, especially the supply-side reform, the country could keep average annual economic growth at or above 6.5 percent in the next five years.

The 2016 G20 Summit will be held on Sept 4-5 in the eastern city of Hangzhou under the theme of "towards an innovative, invigorated, interconnected and inclusive world economy."