Lenovo tablets and mobile phones are on display at a news conference on the company's annual results in Hong Kong. Photo: Reuters/Bobby Yip

Lenovo President Liu Chuanzhi has backed “innovation” and “reforms” as key pillars to guide growth in the company and the greater Chinese economy, the China Securities Journal reported on Friday.

Liu said that supply-side reforms have stepped up and the results are “showing” as capital is being guided to invest in “physical entities,” according to the report.

Liu was speaking at the launch of Guangzhou Kingmed Diagnostics, a third party laboratory service that was recently listed in the A-shares market in China. Lenovo Group has a stake in Kingmed, according to the report.

Liu points to the example of Kingmed as a way of investment in “physical entities,” stating that companies are scared of investing in industries that have problems of overcapacity, so supply-side reforms will tackle the issue of overcapacity and encourage investment in these “right areas,” the China Securities Journal reported.

Liu also stressed the importance of Chinese companies expanding overseas as that would allow them to find “synergies “ elsewhere, pointing out the example of Joyvio Group, an agricultural product company under the Lenovo banner, which has expanded overseas and “gained new agricultural techniques.”