Chinese Premier Wen Jiabao promised further government action to maintain steady growth and neutralize the impact of the global financial crisis on China, the South China Morning Post reported. With policymakers concerned that inflationary pressure and slowing industrial growth will stymie China’s still rapid expansion, Wen said the government will move to prevent "large surges and troughs" in the economy. He noted that measures employed recently – an interest rate cut, the scrapping of stamp duty on stock purchases and a state buyback of shares in three of the biggest banks – have worked well so far. Su Ning, deputy governor of the People’s Bank of China, said the interest rate cut was largely aimed at shoring up the weakening stock and property markets rather than boosting economic growth. Although Su remains concerned that weakness in these markets might spread, he believes a slight slowdown in the economy is appropriate and will help resolve imbalances.
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