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China deleveraging to continue as goals not yet achieved: state paper

FILE PHOTO: Chinese 100 yuan banknotes are seen in a counting machine while a clerk counts them at a branch of a commercial bank in Beijing, China, March 30, 2016. REUTERS/Kim Kyung-Hoon/File Photo

BEIJING (Reuters) - China’s financial deleveraging will continue given that a regulatory clampdown on risky lending hasn’t “achieved its goals”, a state-run newspaper said in a commentary on Wednesday.

The Economic Daily, which is run by China’s cabinet, published the article just days after Premier Li Keqiang said

China is capable of maintaining stability in financial markets, and will also strike a balance between financial stability, gradual deleveraging and steady economic growth.

“From what we can see now, the regulatory goals clearly haven’t been achieved and the talk of the end of regulatory clampdown is out of the question,” the newspaper said.

“Different regulators are quickening the pace to collaborate on their policies to push forward financial deleveraging,” it added.

Reporting by Yawen Chen and Kevin Yao; Editing by Simon Cameron-Moore

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