Vice-premier Li calls for safe global financial system

Updated: 2011-05-13 14:30
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BEIJING -- Chinese Vice-Premier Li Keqiang on Thursday called for more balanced and equal partnerships and the construction of a secure fiscal and financial system to achieve global economic recovery and sustainable growth.

Li was speaking at the third annual meeting of the International Forum of Sovereign Wealth Funds, which ended Thursday in Beijing.

He called on the international community to take hold of the spirit of tolerance and cooperation for the development of emerging economies, and work together to find a solution to unbalanced development.

All countries should stick to an open market and oppose protectionism in any form to boost strong, balanced and sustainable economic growth, the official said.

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Li noted that a healthy and orderly financial market would benefit the development of a real economy, therefore financial innovation and development should cling to the principle of serving the real economy.

The deep impact of the global financial crisis has not yet completely been removed, and all countries should work to push forward reforms in the fiscal and financial system, keep fiscal deficits and debt under control and improve the international monetary system to reduce fiscal and financial risks, he said.

Also, issuing country of the global major reserve currency should fully consider both domestic and international economic conditions when conducting macro-economic policies, he added.

Li promised that the Chinese government would work to boost its reforms in the fiscal and tax system, as well as that of the financial system. China would also improve its exchange rate regime and strengthen financial supervision.

Additionally, Li praised the active role of sovereign wealth funds in stabilizing the international financial market and reassuring market confidence. China would continue to support the independent investment and management of its domestic sovereign wealth funds.

The 27-member forum gathers state-owned investment funds worldwide, which seek long-term investment that serves domestic economy.

The two-day meeting attracted about 150 representatives from sovereign wealth funds, investment banks and financial institutions of 29 countries.

At the third annual meeting held by the China Investment Corp (CIC), the forum issued a communique to call on recipient countries of investments from sovereign wealth funds to keep open to investment.

The forum also announced Thursday that its members had agreed to set up a permanent secretariat to enhance the forum's function.

Jin Liqun, chairman of the CIC's board of supervisors, took over the position of the forum's new chairman for a two-year term from David Murray, chairman of Future Fund Board of Guardians of Australia.