BEIJING Nov 26 China will rely on market-based
reforms to unleash fresh growth drivers to support the economy,
not ultra-loose policies, central bank chief Zhou Xiaochuan said
China's economic growth is within a "reasonable range" while
inflation and employment remain generally steady as the
government pushes structural changes, Zhou said in a speech at a
"The Chinese government is emphasising reforms to boost the
vitality of the market and maintain stable economy growth,
rather than relying on ultra-loose fiscal or monetary policy to
sustain growth and employment," Zhou said in the speech, later
published on the central bank's website www.pbc.gov.cn.
A recent Reuters poll that showed China's economic growth
could slow to 7.4 percent in 2014 from an expected 7.6 percent
this year - the weakest in 14 years. The government is aiming
for 7.5 percent growth in 2013.
Zhou said China needs to maintain relatively strong economic
growth, given the pressure for job creation.
He also reiterated the possibility of widening the yuan's
trading band as part of reforms to make the currency
more responsive to market forces. He did not elaborate.
Last week, Zhou dangled the prospect of speeding up currency
and interest rate liberalisation in comments released as part of
a public guide book to reforms after a key party plenum.
In his speech he also repeated that China will quicken the
pace of making the yuan fully convertible by reducing controls
on cross-border capital flows.
China will also expand quotas for the Qualified Foreign
Institutional Investor (QFII) programme and the Qualified
Domestic Institutional Investor (QDII) programme, and may scrap
quotas altogether when conditions are ripe, Zhou said.