Amid the gloom hanging over China, a senior adviser to Chinese President Xi Jinping gave a rare defense of the country’s economy, saying Beijing has strong leadership to continue its effort to remake the country’s growth model while pledging not to launch massive stimulus to revive growth

As it acts upon the 13th Five Year Plan, Beijing must combine government fiscal investment, corporate R&D, industrial investment, venture capital, bank credit investment, capital market financing, science funding and more, to make a financial system with a full range of support to update China’s economy. An efficiently operating system will be key to the nation’s future competitiveness.

China’s economy grew at its slowest pace since 1990 last year but stayed within range of the government’s target, as growth in services such as finance and healthcare cushioned a slowdown in manufacturing and construction.

China isn’t facing a "cataclysmic" economic slowdown and last week’s market turmoil was more about badly designed stock market circuit breakers, said Nobel-prize-winning economist Joseph Stiglitz.

China will use market solutions to ease its overcapacity woes and will not use investment stimulus to expand demand, Premier Li Keqiang said during a recent visit to northern Shanxi province, according to state media.

The Asian Development Bank president said Friday he is optimistic China's economy will post healthy growth of 6.7 percent this year despite jitters over the yuan's depreciation and a plunge in Chinese stocks.

Quantitative easing may in part explain the destabilizing effects that the global economy is facing, with cheap credit continuing to fueling the expectation of ever-rising prices. The 2015 Chinese crash was a direct product of the U.S. financial crisis of 2008, which was itself the result of a bubble in financial, insurance, and real estate assets.

China moved to support its sinking stock market as state-controlled funds bought equities and the securities regulator signaled a selling ban on major investors will remain beyond this week’s expiration date, according to people familiar with the matter.

Chinese stock markets tumbled 7 percent in their opening session of 2016 on Monday as weak factory activity surveys and falls in the yuan added to concerns about the struggling economy, forcing exchanges to suspend trade for the first time.

China's factory activity contracted for the 10th straight month in December, and at a sharper pace than in November, a private survey showed, dampening hopes that the world's second-largest economy will enter 2016 on steadier footing.