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China's largest bank says no basis for continued yuan depreciation

Published 25/02/2016, 03:01
© Reuters. Picture illustration taken in Beijing shows Chinese 100 yuan banknotes
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SHANGHAI (Reuters) - The chairman of Industrial and Commercial Bank of China <601398.SS> (HK:1398), the country's largest bank by assets, said on Thursday there was no basis for continued depreciation of China's yuan.

Fears of a Chinese slowdown have rocked financial markets, with speculation that Beijing may devalue the yuan, also known as the renminbi, to stimulate the economy which showed its slowest growth in 25 years over 2015.

"China's current account balance situation is good, and there is no basis for continued renminbi depreciation," ICBC's Jiang Jianqing said at an event in Shanghai, one day ahead of the G20 meeting of policymakers in the city.

China has faced growing calls, including from the United States, for greater transparency over its currency's exchange rate. Beijing has maintained it will keep the yuan "basically stable at a reasonable and balanced level".

The official China Daily newspaper earlier quoted finance minister Lou Jiwei as saying a proposal to devalue China's currency was not on the agenda for the G20 meeting.

© Reuters. Picture illustration taken in Beijing shows Chinese 100 yuan banknotes

Jiang added in his speech on Thursday that financial institutions faced pressure from slowing economic growth, although the risks they faced were under control.

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