Chinese Premier Li Keqiang has issued assurances over his country's economy after global markets were roiled by concerns over its slowing growth, state media reported on Saturday.

Top global markets ended the week Friday largely recovered from China-induced panic selling, but market watchers remain worried the turmoil in the world's number two economy will drag down global growth.

However, a report by the official news agency Xinhua quoted Li as saying "the Chinese economy is operating within an appropriate range and China continues to lead the world in terms of growth".

He added that "in the context of complex and changing situations abroad and deep-rooted problems at home, we pressed ahead with progress while ensuring stability with sustained efforts for structural reforms and targeted macro-regulation measures".

"These included, among others, cuts in the required reserve ratio, interest rates, taxes and fees and measures aimed at stabilizing the market, which are already paying off."

Li made the comments on Friday when he chaired a special meeting of the State Council to discuss developments in the global economic and financial field and their implications for China.

Li conceded that "now that the traditional drivers for growth are not as strong, it is important to come up with new measures to bolster reform and opening up. It is necessary to provide more public goods and services, and encourage mass entrepreneurship and innovation to boost the growth momentum".

China imposes limit on local government debt: Xinhua
Beijing (AFP) Aug 29, 2015 - China has imposed a limit on local debt, state media reported Saturday, as the world's second-largest economy tries to control massive borrowing by its regions.

The standing committee of China's National People's Congress (NPC) approved the ceiling of 16 trillion yuan ($2.5 trillion) in local debt for this year, the official Xinhua news agency reported.

The NPC is China's Communist Party-controlled legislature.

The total for 2015 is made up of the 15.4 trillion yuan in local government debt outstanding as of the end of last year and 600 billion yuan deemed the limit localities can take on in additional borrowing this year, Xinhua said.

A new budget law and a government directive earlier stipulated that China should limit the local government debt balance and that the size is subject to approval by the NPC after submission by the State Council, China's cabinet, Xinhua said.

China is trying to transform its economic model away from debt-fuelled investment projects and make consumer spending the driver of growth as its economy matures and its citizens become wealthier.

Fitch Ratings said in a statement Friday that the move showed "a commitment by the authorities to bolster the borrowing framework for local government as part of a broader debt reform initiative".

Air China reports leap in H1 profit on lower fuel costs
Shanghai (AFP) Aug 28, 2015 - Air China, the country's flag carrier, said its net profit surged more than 720 percent year-on-year in the first half of 2015, supported by lower fuel prices.

The company made net profits of 4.19 billion yuan ($655 million) in the first half, up strongly from 510.37 million yuan in the same period last year, it said in a statement filed to the Hong Kong stock exchange late Thursday.

"The global aviation industry was generally healthy with sustained growth in demand and relatively low fuel prices," Air China said, adding a recovery in the world economy and a "steady" Chinese economy supported the company.

China's growth is actually slowing. The economy expanded 7.0 percent in each of the first two quarters of this year, lower than the 7.4 percent growth last year, which was its weakest since 1990.

The airline said its operations benefited from lower oil prices, which contributed to a near 30 percent reduction in fuel costs for the first half.

Air China carried 43.67 million passengers in the first half, up 8.79 percent from the same period last year, it said.

The airline's stock gained 8.90 percent in Shanghai trading but closed 4.00 percent down in Hong Kong on Friday after the results announcement.

Another of the country's biggest carriers, China Southern Airlines, on Friday reported a net profit in the first half of 3.48 billion yuan, according to a statement to the Hong Kong stock exchange, having made a net loss of 1.06 billion yuan in the same period last year.

The airline, based in the southern city of Guangzhou, credited lower fuel and economic improvements for the turnaround.

China Southern shares jumped 8.05 percent in Shanghai but dropped 1.95 percent in Hong Kong before the results announcement.