China locked into financial policy

China has reiterated its commitment to proactive financial policies and moderately loose monetary policies amid market speculation that it might be preparing an exit strategy.

Despite the fact that the country's economic growth is likely to speed up in the fourth quarter, the government will stay the course on its fiscal stimulus spending and its support of loose monetary policy, said Vice-Premier Li Keqiang yesterday at the International Tax Dialogue Global Conference.

On the subject of the $586-billion stimulus package's role in reviving the economy, Li said: "The stimulus package is practical, timely and effective. But the stimulus financial policies should also be flexible and sustainable."