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China remains confident in its ability to fend off systemic risks in the economy and keep its fundamentals healthy and stable, the official Xinhua News Agency reported on Sunday, citing a statement from the governor of the central bank. Potential risk levels in China's financial sector have somewhat increased in recent years because of a slowdown in the country's economic growth, as well as structural adjustments and big fluctuations in international financial markets, Xinhua quoted Zhou Xiaochuan as saying.
But China's economy, the world's second biggest, is expected to be able to achieve its annual growth target of around 6.5 percent this year, Zhou was quoted as saying. The country will continue to maintain the stability and continuity of its macroeconomic policies, he added.
Risks in so-called shadow banking in China have somewhat eased, while non-performing loans are still at a relatively low level, Xinhua reported, citing the statement. China will prevent systemic risks from increasing by de-leveraging and curbing asset bubbles while maintaining a modest growth of its economy, the statement said.
Zhou submitted the statement to a meeting of the International Monetary and Financial Committee, the steering body of the International Monetary Fund (IMF), which was held in Washington over October 13-14, Xinhua said.

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