World Bank chief hails China reform
The head of the World Bank says he's "very impressed" with China's reform plans, playing down concerns over how Beijing has managed its economic slowdown.
World Bank President Jim Yong Kim told CNBC at the G-20 summit in Shanghai on Friday that clear communication from Chinese leadership will be key to tempering fears going forward, but that reaction to the country's economic adjustments have so far been overblown.
Global market volatility in recent months, particularly on mainland exchanges like the Shanghai composite, has been blamed on disappointing data out of Beijing and worries over how regulators and policymakers have weathered the storm.
Kim said that investment growth has tapered off in China, despite the fact that Beijing was "very clear" about their transition from manufacturing for exports to services-led growth and consumption. Services now account for more than 50 percent of the Chinese economy.
"So a lot of the things they said would happen are in fact happening," he said.
Kim told CNBC that China's Premier Li Keqiang had told him there were plans to keep the public informed about policy changes going forward.
"We're very impressed with their seriousness of the structural reforms," he said.
"There have been bumps in the road, you bet, but it's a matter of getting used to being the second largest economy in the world and having everything that happens in your country affect everyone else."
And it's key to remember some basic facts, Kim stressed. China's economy grew by 6.9 percent, totaling $11 trillion, which accounted for nearly 30 percent of all global growth.
Ultimately, China's transition may be providing pockets of opportunity.
Australia's Treasurer Scott Morrison said the country's economy had transitioned in sync with China, moving towards services following the now-fading resources boom that previously dominated trade.
"We're both transitioning but even in the resources sector, volumes are still up and market share is still growing in all of these important areas. So we're still maintaining our momentum, albeit at a different price."
"But in other sectors of our economy we're seeing expansion," he added, highlighting healthcare, dairy, services and agricultural commodities.
"They're diversifying, we're diversifying and I think we're well synchronized. So I'm a lot more optimistic than I think others are, but it's based on our experience."