China's economic growth in proper range: Li Keqiang

Chinese Premier Li Keqiang today tried to placate global investors about an economic slowdown in the world's second largest economy, saying growth is in the "proper range" and China has no plans to allow Yuan to depreciate further to trigger a currency war.
"The underlying trend of the economy is still moving in a positive direction," said Li, the country's No 2 leader after President Xi Jinping.
Claiming that 7 million urban jobs were created in the first half of the year, he said, "all this shows the Chinese economy has been running within the proper range."
He also said China, the world's largest trading nation, has no intention of boosting exports through currency depreciation.

Playing down global concerns over yuan's 4 per cent depreciation in a week last month, Li told the Summer Davos forum at Dalian that China is unwilling to see a currency war as it will be harmful to the country.
Top leaders in the Communist nation, a key driver of global growth, are making high-level efforts to normalise global financial markets which have been in turmoil since a collapse of the Chinese stock market and a sharp decline in manufacturing and exports.

Using yuan depreciation to boost China's export does not accord with the structural readjustment of the Chinese economy and export businesses also want the yuan to remain stable at an equilibration level, Li said.

China depreciated yuan about 4 per cent in a span of just two days, sending a cascading affect in India and other world markets.
Li, however, said there is no basis for continuing the depreciation, indicating there will be no more decline in yuan.
China is willing to make the yuan join the Special drawing rights (SDR). Instead of the source of global financial risks, China remains one of the drivers of global growth, he said.
About the stock market collapse in June-July in which USD 3.2 trillion worth of capital has been wiped out, Li said China fended off potential systemic financial risks during the market collapse.

Authorities have taken measures to prevent the spread of financial risk and stabilise the stock market during unusual fluctuations in June and July, Li said when answering questions from Yorihiko Kojima, chairman of Mitsubishi Corporation, during discussion with global business leaders.
The measures are normal practice in global markets and do not mean the government is trying to replace the market or weaken it, Li said.
China will continue to develop a multi-layered capital market and make it open, transparent and stable based on market forces and the rule of law, he added.