PBoC chief: China market volatility nearing end

September 07, 2015 07:46
China's markets will stabilize and the nation's economic fundamentals remain unchanged, says central bank governor Zhou Xiaochuan. Photo: Bloomberg

The volatility in China's financial markets is nearing an end, the nation's top central banker said over the weekend, in comments aimed at assuring global investors following the recent rout in equity prices and a slide in the renminbi.  

Markets will become more stable, People’s Bank of China (PBoC) Governor Zhou Xiaochuan said, adding that state intervention in the equity market prevented a systemic risk.

In a statement posted on the central bank’s website Saturday, Zhou also said the renminbi's exchange rate versus the dollar is close to stabilizing, Bloomberg News reported.

The statement came after a meeting of finance ministers and central bankers from the Group of 20 nations in Ankara.

There is no basis for long-term yuan depreciation, Zhou was quoted as saying.

In other comments, the PBoC chief said that Beijing's determination to deepen market reforms hasn't changed, and that the nation's economic fundamentals remain relatively unchanged.

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