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By Xie Fang

"China's macro leverage ratio has been stabilized, and the Chinese economy will hit its growth target for this year," Yi Gang, governor of the People's Bank of China (PBOC), China's central bank, told media Thursday, the Securities Daily reported.

"We have been talking about deleveraging for all these years," said Yi. "Now, the macro leverage ratio is holding steady, which is a significant change."

According to Yi, China has seen a continued decline in the leverage ratio of its state-owned enterprises (SOEs) while the indebtedness of the country's local governments remains under control. "China's effort to guard against financial risks has taken effect," he said.

In addition, Yi pointed out that China has been constantly improving its economic structure, saying that the Chinese economy has entered the phase of high-quality development.

Yi said that all the monetary policies implemented by the PBOC are aimed at boosting China's economic growth. "The Chinese economy is in good condition as indicated by such economic indicators as consumption, tax revenue and nominal GDP growth," he said. "China's balance of payments remains roughly balanced while its financial risks are controllable."

Earlier this week, to shore up China's real economy, the PBOC reduced the amount of money that banks must hold in reserve for the fourth time this year. According to Yi, China's bank credit is growing at an appropriate pace, which is very supportive of China's real economy and small businesses.

Yi emphasized the outstanding role played by consumption in China's economic growth. "Consumption has made up the bulk of China's domestic needs, which is now the most important driver for China's economic growth," he said. "The contribution made by China's service sector to the economic growth is also increasing, reflecting a better quality of the Chinese economy."