Nation 'can cope with downturn'

The fundamentals of the Chinese economy remain sound and the country can cope with the challenges posed by the worsening global financial crisis, central bank governor Zhou Xiaochuan told legislators yesterday.

But "we must not underestimate the impact (of the crisis) on China's economy," he said while reporting to the fifth session of the Standing Committee of the National People's Congress (NPC).

Despite the impact of the global financial crisis, Zhou said "we should recognize that the overall economic condition is good, our financial institutions are generally strong, with increased profit-making and risk-fending abilities, market liquidity on the whole is ample and our financial system is sound and safe".