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But inferior steel production will be added from other operational steel plants, which will lead to growing output, Wang said.

But he also acknowledged that some large private companies had developed investment risks and gone bankrupt because they had borrowed money fraudulently and used it to participate in risky ventures, creating problems for the society and the economy.

But Jordan Harmon, a member of the Creek Nation and an attorney, appeared to be less accommodating.

But WHO Director-General Tedros Adhanom Ghebreyesus told CNBC's Hadley Gamble during a panel discussion in Riyadh, Saudi Arabia, on Sunday that "global markets … should calm down and try to see the reality. We need to continue to be rational."

But a much smaller outstanding amount of leverage businesses has alleviated this concern. At present, the outstanding amount of margin trading accounts for about 1.7 percent in total free-float capitalization of the A-share market, much lower than the 3.3 percent during the 2015 market meltdown. The outstanding share-pledged borrowing by listed firms has also dropped significantly from the peak.