China’s Li - No basis for long-term Yuan depreciation

Chinese Premier Li assured markets today that there is no basis for long-term Yuan depreciation. His comments come after the PBOC weakened Yuan fixing by most since August 2015.

Key quotes

Has room to boost fiscal deficit

To step up proactive fiscal policy

Fully capable to prevent systematic risk

To flexibly implement prudent mon policy

To push forward supply side reform

Have enough policy tools to keep growth in range

To realize major growth targets this yr

Chinese economy won't see hard landing