Asia-Pacific News

Deripaska: Why I’m confident on China

Rusal: No big changes in China over 6-12 months

Oleg Deripaska, the Russian tycoon who is president of aluminum giant Rusal, is confident that China should remain stable in the medium term, despite recent market turmoil.

"I wouldn't support this view that China will collapse tomorrow," Deripaska told CNBC at the World Economic Forum in Dalian, China.

"There is no foundation for that. Maybe you can see it better from New York or London but not from China soil for sure."

A worker stands on piles of industrial products before exporting, at a port of Lianyungang, China
China changes GDP calculation method to improve accuracy

Over the summer, fears about Chinese economic growth slowing led to a dramatic increase in stock market volatility globally.

Deripaska warned that there might be some risks that the Chinese would "shake the debt market…for some political reason or for something else but for the moment we can't see any problem in the future."

The Rusal president noted that China had not cut its aluminum production, in spite of a global surplus that has driven prices to six-year lows, but added "they'll learn".

Johannes Eisele | AFP | Getty Images

However, some Chinese producers may benefit from the devaluation of the yuan by the Chinese government, as it is likely to make domestic producers more attractive, and from the falling price of coal, which is key to producing the metal. The country already makes up more than half of the world's aluminium production.

Rusal has reported more than doubled second-quarter core profit, despite the declining price of its major product, because of cuts to production costs and the weaker rouble.