Liu He, who led the Chinese delegation in Davos, also touched on defusing risks in the financial sector and leveraging control in China's domestic economy in his speech on Wednesday. He said that China's macro leverage ratio has been declining since last year's fourth quarter.

LIU HE, DIRECTOR CPC CENTRAL LEADING GROUP FOR FINANCIAL & ECONOMIC AFFAIRS "Shadow banking and hidden debt for local governments are serious problems we have to deal with. We will continue to make progress while maintaining stability. In about three years' time, we will strive to bring the overall leverage ratio under effective control and make the financial system more adaptable and better able to serve the real economy."