China capable of achieving full-year GDP growth target, says premier

[DALIAN] China is entirely capable of achieving its full-year growth target and controlling systemic risks despite many challenges facing its economy, China's Premier Li Keqiang said on Tuesday.

Beijing is targeting economic growth of around 6.5 per cent in 2017, compared with the actual 6.7 per cent pace in 2016 - the slowest in 26 years.

In a speech at the World Economic Forum (WEF) in the northeastern city of Dalian, Mr Li said the Chinese economy remains steady with improving momentum in the second quarter, as domestic demand has become a key pillar for the world's second-largest economy.

Global markets continue to fret about the outlook for China as policy makers have tightened financial conditions and cracked down on wanton growth in debt in their quest to defuse bubble risks.

Authorities have also taken steps to stabilise the yuan currency and reassure investors that Beijing remains committed to reforms of the capital markets, even as it puts up curbs to stem the flow of funds.

China will continue to push for capacity cuts in sectors such as steel and coal, Mr Li said.

Mr Li also stressed China will further facilitate foreign investment by making it easier for overseas firms to register new companies locally and easing market access for services and industrial sectors.

REUTERS