China fended off potential systemic financial risks during the recent market collapse, Premier Li Keqiang said at Summer Davos in Northeast China’s Dalian city on Sept 9.

Authorities have taken measures to prevent the spread of financial risk and stabilize the stock market during unusual fluctuations in June and July, Li said when answering questions from Yorihiko Kojima, chairman of Mitsubishi Corporation, during discussion with global business leaders.

The measures are normal practice in global markets and do not mean the government is trying to replace the market or weaken it, Li said.

China will continue to develop a multi-layered capital market and make it open, transparent and stable based on market forces and the rule of law.

Weighed down by volatile global markets, Chinese shares have gone through major fluctuations in the past two months with the benchmark Shanghai Composite Index falling around 40 percent from its peak in June.

“The recent volatility appeared to be a follow-up to the global financial crisis that broke out in 2008,” Li said. “China is not the source of it, but instead remains as one of major drivers of global growth.”

Li said China will continue financial reform for the sake of stability and the opening up of the sector. China has scrapped the interest rate ceiling for both loans and deposits, established a link between Shanghai and Hong Kong exchanges and allowed more international investment. The government will widen access for private and foreign capital to enter the sector in the future.

The reform will not change its path nor slow its pace, Li said.