Wu: The stock market instability will be damaged investor confidence.

<P>: Http:// hearing, the People's Bank of China Deputy Governor Wu Xiaoling said in Brussels yesterday, in view of the euro's stability and strong economic growth in Europe, the euro will increase the proportion of foreign exchange reserves in China, but will not reduce the dollar reserves .of GDP. .Turning to the recent sharp stock market decline in China, she said that if the stock market is not stable operation, the Chinese investor confidence will be damaged, affecting consumer demand. .</ P> <P> Wu Xiaoling, savings and participation in global trade imbalances seminar said that the recent stock market rose too fast, I hope its development will be more stable. ."We believe that if China's stock market is not stable development, will affect the confidence of economic development, and the psychological impact caused by other parts of the world." However, she said, optimistic about the global economy, China is capable of and responsible to solve their own problems .. .</ P> <P> Turning to the RMB exchange rate issue, Wu said that China will not bow to external pressure, speed up the rate of the renminbi revaluation. .If the smooth progress of China's exchange rate reform, RMB appreciation will be able to maintain the momentum; But if China's economic problems, exchange rate reforms stagnate, then the yuan will again face the risk of devaluation. .</ P> <P> Wu Xiaoling said, "If we intend to adjust the imbalance in China, first of all to improve exchange rate flexibility, but this is not the main means." </ P>.