China has ability to deal with risks to economy: premier

Updated: 2015-07-07 10:20


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Chinese Premier Li Keqiang said on Monday China has the confidence and ability to deal with risks and challenges to its economy, according to a statement on the central government's website.

He also told a meeting of overseas Chinese business people that the main economic indicators had stabilized and positive signs are emerging in the world's second-largest economy, adding that it has performed reasonably in the first half of the year.

His comments come after an extraordinary weekend of policy moves to help stabilize China's stock market, which has seen a dramatic 30 percent slide since June.

Listed firms do their bit to prop up market by Cai Xiao, China Daily

China Vanke takes lead with plan to repurchase $1.61b of shares listed on Shenzhen bourse

While the government takes measures to halt the slide in the nation's stock market, listed companies are also taking steps to restore investor confidence.Experts said the purpose of government intervention should be to stabilize the market and a critical determinant of further intervention depends on whether the volatility on the small and medium-sized enterprise board and ChiNext board will continue to unsettle the rest of the market.

But the government should let the market decide the level of the rebound, they said.

China Vanke Co, the largest residential homebuilder, approved a plan to repurchase as much as 10 billion yuan ($1.61 billion) of its Shenzhen-listed A shares at as much as 13.70 yuan each, which was the closing price on Friday, according to a statement to the Hong Kong Stock Exchange on Monday.

Led by Suning Commerce Group Co Ltd, 50 listed companies on the small and medium-sized enterprise board in Shenzhen vowed on Saturday to take positive measures of stock repurchase, shareholding increase and no reduction in shareholdings for the moment.

Zhang Jindong, chairman of Suning, promised that the company would not reduce shareholding within three years. As non-tradable shares of Suning's major shareholders worth around 29.7 billion yuan would become tradable on Friday, Zhang's promise meant that they would hold them for a period of three more years.