China determined to solve major problems in economy

China is determined to solve its economic problems accumulated over its long-term development, Chinese Vice Finance Minister Zhu Guangyao said Saturday.

After attending the G20 finance ministers meeting, Zhu said that the economic fundamentals of the Chinese economy are sound, but over the course of China' fast economic development, problems do occur.

To maintain financial stability, overcapacity of economy, shadow banking and debt accumulated overtime by the local governments are three main challenges facing the Chinese economy, he noted.

"Right now, we are taking a variety of policies and measures to address them and must fix the problem comprehensively," the Chinese vice finance minister said.

According to Zhu, the problem of shadow banking in China is manifested in a different way compared with the same issue in other economies in terms of both the internal structure of the shadow banking sector and the ways it is displayed outwards.

The main problem of the shadow banking in China is the off- balance sheet of banks which mainly involve trust funds.

Compared with the total financial volume, the level of Chinese shadow banking is not high, but the amount is growing very rapidly, Zhu said.

The Chinese financial regulators, in minimizing the potential risks of seeing the crisis of shadow banking sector break, should strike a balance between avoiding local and systematic risks and continuing to provide financing for the small and macro companies, he added.

G20 finance ministers met on Saturday for their fifth and final meeting under Australia's presidency in 2014. The focus of the gathering is on a collective determination to deliver more economic growth and, as a result of that, more jobs.