China central Bank governor expresses hopes for soft landing

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China central Bank governor expresses hopes for soft landing

HONG KONG SHANGHAI - China's central bank governor said on Wednesday that the yuan will remain stable against a basket of currencies and expressed hopes for a soft landing in the country's property market.

Yi Gang, the governor of the People's Bank of China PBOC, told a conference in Hong Kong that structural reform will continue to fuel China's economic growth and that the country's reform and opening-up policy will continue.

The Chinese economy has remained on track despite some challenges and downward pressure, according to Yi at the Global Financial Leaders' Investment Summit.

The Chinese economy is quite resilient and inflation remains subdued. He added that China's accommodative monetary policy played a role in supporting stable economic growth, and the central bank will use structural policies to prop up key areas such as agriculture, green development and smaller companies.

Although the yuan has weakened against the dollar this year, it has appreciated against other major currencies and will remain relatively stable against a basket of currencies, with the exchange rate being determined by the market, Yi said.

Yi said local governments play an important role in promoting its healthy development, despite the fact that the property market is suffering from a prolonged debt crisis.

The housing market in China hopes to achieve a soft landing, because the housing sector is linked to a lot of upstream and downstream industries.

The central banker said that China will continue to improve business environment, protect property rights, and that Hong Kong will continue to show remarkable resilience and has a great potential in deepening connections with the mainland financial market.