Premier: China's Financial System "Sound and Safe"

NANNING, Oct. 5 (Xinhua) -- Chinese Premier Wen Jiabao said here Sunday that China's financial institutions have generally increased their strength, profitability and risk-resisting ability, and the financial system as a whole is sound and safe in face of the international financial crisis.

    Wen made the remarks during an inspection tour to Guangxi Zhuang Autonomous Region in southwest China.

Chinese Premier Wen Jiabao greets workers as he visits an oil refinery under construction in Qinzhou City, southwest China's Guangxi Zhuang Autonomous Region, Oct. 4, 2008. (Xinhua Photo)

    He said that the world economic situation has had dramatic changes this year, the United States' subprime crisis has been deteriorating and is having an increasingly serious negative impact on the world's financial market and the world economy as a whole.

    Under multiple negative factors, both international and domestic, China has reacted actively and properly, made efforts to improve the predictability, pertinence and flexibility of macro-economic control policies, and timely solved outstanding problems in economic development. As a result, the country's economy has maintained its momentum of smooth and rapid development, Wen said.

    Generally speaking, China's economic foundations have not changed and the economy is developing towards the preset macro control targets, said the Premier.

    "We have full confidence in China's economic development and financial stability," Wen said, stressing that the most important thing is to do our own business well, maintain the stability of the economy and the financial and capital markets.

    "It is the biggest contribution to the world when a big country with a population of 1.3 billion is able to maintain a lasting, smooth and fast economic development," he said.

    On Saturday and Sunday, Wen inspected villages and factories in the cities of Beihai, Qinzhou and Fangchenggang, and talked with local people of different nationalities and from all walks of life.

    He said that the development of Beibu Gulf should focus on technological innovation and environmental protection to build into an important zone for international and regional economic cooperation.

    In Gaosha Village of Qinzhou, Wen inspected rice paddy and visited farmers' homes. He said that the government will further reinforce its support for agriculture, continue to increase subsidies to farmers and raise the minimum grain purchasing prices to mobilize farmers to produce more grain.

Chinese Premier Wen Jiabao examines the growth of paddy at Gaosha Village in the Qinnan District of Qinzhou City, southwest China's Guangxi Zhuang Autonomous Region, Oct. 5, 2008. Wen made an inspection tour in Guangxi on Oct. 4-5.  (Xinhua Photo)

    (Source: Xinhua )