China admits financial sector difficulties

But will implement targeted measures.

Finance Minister Lou Jiwei said China's economy is contending with numerous difficulties but the government will accelerate efforts to support economic growth by resorting to what it calls targeted measures.

Lou said China still faces a lot of difficulties and challenges but argued the domestic economic situation has been largely stable so far this year, with major economic indicators within reasonable ranges.

He did not, however, give more details of what these targeted measures are although he said the government will redouble efforts towards more efficient use of funds transferred from the central government to local governments.

Beijing will also overhaul existing preferential tax policies and continue to tighten administrative spending.

The People's Bank of China earlier said China would maintain a prudent monetary policy and increase lending to smaller companies.