Chinese Premier Li said there is no basis for continuing depreciation of the yuan

Chinese Premier Li Keyaiang said there was no reason to continue the devaluation of the yuan, after the central bank allowed the currency to devalue 2.8 percent this month.

The yuan can remain stable at a "reasonable and equilibrium level," Li said, according to a statement posted on the website of the State Council. Li made the comments in a meeting of the State Council on Friday.

The assurances came after the central bank on August 25 cut interest rates for the fifth time since November and reduced the amount of money that banks must set aside to halt the biggest stock rout since 1996. Deflationary risks, overcapacity and debt hovered like a dark cloud over the Chinese economy, which is projected that this year is the slowest and growth from 1990.

China will continue to conduct an active fiscal policy and prudent monetary policy and will use "more accurate" measures to deal with the pressures on the economy, Li said in the statement. The government will keep regional and systemic risks, according to the statement.

Politicians want to stabilize Chinese shares before 03 September, when the military parade celebrating the 70th anniversary of the victory over Japan during World War II, according to sources with the question familiar