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China says to deepen financial reforms, sees no sharp yuan fall

Guo Shuqing, China's newly appointed banking regulator, attends a news conference ahead of China's parliament in Beijing, March 2, 2017. REUTERS/Shu Zhang/Files

BEIJING (Reuters) - China will deepen financial sector reforms and fend off major risks in the economy, the banking and insurance regulator said on Thursday.

China’s economic fundamentals showed no possibility of a sharp yuan depreciation and the yuan could rise in future, Guo Shuqing, Chairman of the China Banking and Insurance Regulatory Commission (CBIRC), said in a statement published on the regulator’s website.

The yuan had entered “a reasonable range of two-way fluctuations”, said Guo, who is also the Communist Party chief of the central bank.

A trade war initiated by the United States could not be sustained, Guo added.

Reporting by China Monitoring Desk; Editing by Nick Macfie