China says it will fend off financial risks, communicate better with markets

BEIJING (Reuters) - China has many policy tools at its disposal to fend off financial risks and will improve its communication with markets, Premier Li Keqiang said on Monday.

Li told the visiting International Monetary Fund Managing Director Christine Lagarde that China will not rely on yuan depreciation to spur exports.

China will steadily push forward its currency reforms, keeping the yuan basically stable while allowing two-way fluctuations in the currency, Li said in remarks published on the central government's website.

"China disapproves a 'currency war' in the world, which could only harm global economic recovery," Li said.

The government will use "market-oriented means" to help banks keep their capital adequacy ratios at relatively high levels, he said without elaborating.

(Reporting by China Monitoring Desk and Kevin Yao; Editing by Richard Borsuk)