China’s premier, Li Keqiang, told state-owned China Central Television today that the economy’s fundamentals were good and major indicators were improving, despite the Shanghai Composite falling 7% this morning.

“Currently China’s economic fundamentals are good. Main economic indicators such as industrial output, investment, consumption, exports and imports have stabilised and showed improvements since May,” Li was quoted as saying.

“Employment is stabilizing and increasing. The economic performance is within a reasonable range.”

The government will strengthen targeted policy adjustments, Li said, adding that China was able to maintain a mid to high growth rate.

The central bank has recently cut interest rates to lower borrowing costs and encourage more lending, and most analysts expect the central bank to loosen policy further still. Li continued that the government would strengthen targeted policy adjustments, adding that China was able to maintain a mid to high growth rate.