China can meet growth targets without stimulus: PBOC governor

Zhou Xiaochuan, governor of the People's Bank of China, at a press conference on the sidelines of the national legislature's annual session. [Photo/China Daily by Feng Yongbin]

BEIJING - The growth targets China has set for this year and the 13th Five-Year Plan period (2016-2020) can be realized through improving domestic demand, consumption and innovation, without big stimulus, central bank governor said Saturday.

"China will stick to the prudent monetary policy," said Zhou Xiaochuan, governor of the People's Bank of China (PBOC), at a press conference on the sidelines of the national legislature's annual session.

China's growth target for 2016 is in the range of 6.5 percent and 7 percent, while that for years leading to 2020 is above 6.5 percent.

These are "anticipatory targets," which are made on the basis of China's growth trajectory in the past and its growth potential in the future, Zhou said.

China seeks growth by relying more on domestic demand, as the old growth driver of exports loses steam and is not able to contribute to the economic growth the way it used to, Zhou said, adding that China has no intention of manipulating its currency rate to stimulate exports.

With the improvement in domestic demand, consumption and innovation, the growth targets are attainable without resorting to stimulus.

Yi Gang, PBOC vice governor, added that China's reform and opening-up drive will unleash more growth momentum.

In the event of global and domestic financial turbulence, however, Zhou said that China's monetary policy will be flexible.

RMB value back to reasonable level

The Chinese currency renminbi, or the yuan, has started to return to its normal and reasonable level after volatility, and the trend will continue, central bank governor said Saturday. Read More

No worry about asset backed securitization in China

The market of asset-backed securitization (ABS) is quite small in China and risks can be prevented through better oversight and transparency, central bank governor said on Saturday. Read More 

Dim sum bonds future good

From a mid-term perspective, the dim sum bonds would have a nice future, China's central bank governor Zhou Xiaochuan said on Saturday. Read More

No need to stimulate exports by devaluating RMB

Despite sluggish foreign trade, there is no need for China to resort to special measures to improve competitiveness of the country's exports, central bank governor said Saturday. Read More

Financial reform 'under discussion'

Reform of China's financial regulation system is under discussion, Zhou Xiaochuan, central bank governor, said Saturday. Read More