China Says Financial System Must Better Serve the Economy

As China's borrowing costs rise, leadership indicates intent to push forward with reforms rather than stimulus.

China’s government said the nation’s financial system must “better” serve economic growth under a prudent monetary-policy framework as the cost of borrowing on the interbank market surged.

Authorities will boost credit support for industries the government has defined as strategic and those that are labor-intensive, the State Council, or Cabinet, said in Beijing today after a meeting led by Premier Li Keqiang. The nation must more firmly guard against financial risks, according to a statement on the central government’s website.

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