China's Xi says economy had good start to '16 but faces pressure

China's economy has had a good start to 2016 and continues to operate within a reasonable range, but still faces relatively large downward pressure, President Xi said on Friday according to state radio.

Xi reiterated that the country will maintain a proactive fiscal policy and a prudent monetary policy, according to the broadcaster. China will strive to have a healthy stock market, and increase regulation to protect investors, Xi was reported to have said.

China will have a flexible, two-way foreign exchange policy and keep the yuan basically stable, he added, while the government will also introduce urbanisation reform which will help absorb housing inventories.

State-owned enterprise reform, liberalisation of prices, and encouragement of foreign investment would continue, Xi said in comments made during a meeting with provincial and top-level leaders, according to state radio.