CHINA’S stock market has largely completed its recent downward correction, China’s central bank governor said at a recent meeting of the Group of 20 (G20) countries.

    The People’s Bank of China also cited its governor Zhou Xiaochuan as saying in a statement yesterday that the yuan’s exchange rate against the U.S. dollar has stabilized and there’s no basis for long-term depreciation of the Chinese currency despite some weakening of the yuan after China’s move to devalue its currency Aug. 11.

    Zhou made the comments at a two-day summit of G20 finance ministers and central bank governors in Turkey.

    The Shanghai Composite Index has tumbled 39 percent since June 12, when the gauge reached its highest level in more than seven years as investors borrowed record amounts of funds to buy equities.

    The market’s recent correction hasn’t had any notable impact on the country’s real economy, Zhou said. “The stock market’s adjustment is largely in place and the financial market is expected to become more stable,” Zhou was quoted as saying.

    The Chinese Government’s intervention has prevented a free-fall in the market and systemic risk, Zhou said in the statement. The leverage ratio has clearly dropped, Zhou said.

    Zhou reiterated that China’s economic fundamentals are substantially unchanged. The country’s determination to deepen market reforms have not changed, he said. (SD-Agencies)