China's leaders are confident the country can cope with major and external risks, they said at a high-level internal financial meeting, amid financial turbulence at home and rising trade tensions with the United States.
The cabinet-level Financial Stability and Development Commission (FSDC), convened by Vice Premier Liu He for its first meeting, concluded on Monday that China's structural deleveraging was progressing in an orderly way and financial irregularities had been curbed.
"High-risk financial operations have shrunk and some institutions have toned down their barbaric expansionary behaviour," the government said in a statement posted on its official website on Tuesday.
The statement also confirmed an exclusive Reuters report that Liu was going to be head of the FSDC, which is expected to help improve supervision and coordination among regulators and the central bank as the world's second-largest economy enters the third year of an official crackdown on shadow banking and risky lending.
The FSDC said overall financial operations were stable, and the Chinese economy was resilient with many "favorable conditions" to fend off major and external risks, without detailing the conditions.
"The massive domestic market gives ample space as a cushion," it said.
Ma Jun, a member of the monetary policy committee of the People's Bank of China (PBOC), said he expected structural deleveraging to be the focus in the near future.
"Regulators will focus more on structural deleveraging in the future and avoid excessive use of 'clean-cut' deleveraging measures," he said in a statement released by the central bank on Tuesday.
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