Chinese Premier Li Keqiang promises ‘appropriate liquidity’

Li KeqiangChina will stick to the prudent monetary policy and keep liquidity at an appropriate level to ensure stability of financial markets and the broader economy, Premier Li Keqiang said.

During a recent visit to the northern Chinese city of Tianjin, Li said that the government had the conditions to keep the economy operating in a steady manner as well as maintaining the stability of the financial markets.

Speaking on the topic, he added, "We will stick to the prudent monetary policy, keep appropriate liquidity, realise reasonable growth in credit and total social financing and keep prices largely stable."

However, he did not elaborate how the government would keep appropriate liquidity and realise reasonable growth in credit.

The new leadership o China, the world's third-largest economy, has said they wanted to adjust the nation's policy priorities to value quality of growth over quantity. The leadership is even ready to sacrifice some growth to ensure balanced growth and stability in financial markets.

Chinese economy is expected to grow at a rate of 7.6 per cent in the current financial year, in between the government's growth target of 7.5 per cent and last year's growth rate of 7.7 per cent.