China Premier says economic prospects positive, to maintain policy direction

[DALIAN] The prospects for China's economy were positive even though the world's second largest economy continued to experience downward pressure, Chinese Premier Li Keqiang said on Wednesday.

At a meeting of company executives at the World Economic Forum (WEF) in the northeastern port city of Dalian, Mr Li said China would maintain basic policy direction but get prepared to make pre-emptive adjustments. "We won't be swayed by short term economic fluctuations in our big picture direction," said Mr Li.

Mr Li said the creation of over 7 million new urban jobs and keeping unemployment rate at 5.1 per cent in the first half of this year showed China's economy was on "reasonable track".

The increase in consumption and service sector's portion of economy also showed government policies had gained traction, Mr Li said.

He pledged to push ahead with structural reforms while stepping up targeted regulatory measures.

China's economy grew seven per cent in the first half from a year earlier - in line with the government's target for 2015, but recent downbeat data has raised risks of missing the full-year target.

REUTERS