China will seek a balance between stable growth and risk prevention in the second half of the year, a senior official said on Thursday, indicating that the country is willing to tolerate slower growth to push reforms and curb systemic financial risks.

The government will focus on deepening supply-side structural reforms, resolving risks in local government debt, addressing chaotic activities in the financial markets and stabilizing the property market and private and foreign investment, according to Yang Weimin, deputy head of the Office of the Central Leading Group on Finance and Economic Affairs, China's top economic policy-making body.

Yang said reducing the high debt ratio of State-owned enterprises is one of policymakers' top priorities, adding that the government is capable of striking a balance between maintaining growth and cutting corporate leverage.