Premier Li believes that renovating shanty towns will improve the living conditions of low-income families. (Photo : China Daily)
China has implemented measures to stabilize stock markets, effectively avoiding systemic financial risks, according to Chinese Premier Li Keqiang's comments during the Annual Meeting of the New Champions 2015 on Wednesday.
Li said that the measures aim to mitigate risks of contagion, as China's stock markets went through several atypical fluctuations, especially in the months of June and July.
Li reassured those present that the second-largest economy in the world has a bright future and that the efforts taken by the government are consistent to international practices.
According to Li's statements, China will continue to develop a multi-layered capital market to guarantee long-term stability.
On Wednesday, the Shanghai Composite Index gained 2.29 percent, staying well above 3,200 points in what has been interpreted as a sign of renewed investor confidence.
These results also affected other markets overseas, with Japan's Nikkei Index closing with an almost 8-percent increase on Wednesday, its biggest single-day increase since 2008.
"The Chinese stock markets are relatively new, operating for about 20 years. There is much room for improvement. We need to strengthen government regulation, and also draw lessons from international ones," said Zhang Xiaoqiang, the executive vice chairman of the China Center for International Economic Exchange, to the forum on Wednesday.
Losing confidence in the market has been caused by recent swings in the stock market, as well as the recent devaluation of the yuan.
In response to the worries regarding the economy, Li described the situation as "fluctuating as it seems, yet promising as it's envisioned."
With China's first-half economic growth of 7 percent, it is still one of the fastest growing economies in the world.
