China Confident Over Crisis
China is "fully confident and capable" it can overcome current economic difficulties, a top official said on Friday.Vice Premier Wang Qishan was quoted by state media saying that China will work closely with other countries to guard the stability of the global financial system.
Wang did not elaborate on steps Beijing might take to help calm the worldwide financial storm, but his comments underline that China may yet play an important part in confronting a crisis from it has been largely sheltered because of its capital controls.
China's central bank cut interest rates earlier this week, and speculation is swirling Beijing could pledge to hold onto its vast dollar assets and even buy more to help fund the massive bailout of the U.S. financial system now under way.
U.S. bonds make up the lion's share of China's over 1.8 trillion dollars in foreign exchange reserves.
But as Wang made the comments, Chinese stocks fell sharply at the opening Friday amid a plummeting of global share prices.
A government fund bought stocks in September as part of a market rescue plan, but the key Shanghai index was nearing levels seen before the package was announced.
Kitty Bu, reporting for Reuters.
swirl - the shape of something rotating rapidly
bailout A rescue from financial difficulties
amid in the middle of; among
plummet - drop sharply; "The stock market plummeted"
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