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China says will fend off financial risks

BEIJING (Reuters) - China aims to improve the country’s financial system and capital markets to fend off financial risks, the ruling Communist Party said on Tuesday, following a meeting of its top leadership.

China’s policymakers have ratcheted up support for the slowing economy, while trying to ward off risks.

China will “strengthen the construction of the basic system of the capital market, improve the modern financial system with high adaptability, competitiveness and inclusiveness, and effectively prevent and resolve financial risks,” Xinhua news agency quoted a decision endorsed by the leadership last week.

China will improve state companies’ competitiveness, innovation, resilience and ability to control, Xinhua cited the party as saying.

“We will deepen reforms of state-owned enterprises and improve the system of modern enterprises with Chinese characteristics,” the agency said.

Meanwhile, the government will support the development of small firms and improve the legal environment for private firms and foreign-funded firms, it said.

China will also steadily push forward yuan internationalisation, Xinhua said.

Weakening domestic demand, sluggish investment and a protracted trade war with the United States caused China’s economic growth to slowed to a near 30-year low of 6.0% in the third quarter.

Reporting by China Monitoring Desk and Kevin Yao; editing by Catherine Evans, Larry King