HONG KONG - Australia's Deputy Prime Minister Wayne Swan said Monday he is optimistic on the economic outlook of China and the entire Asia.

"China's economy has stabilized, and it is rebalancing its economic framework through the drive of consumption. The Chinese economy is now 40 percent larger than it was at in the end of 2007, and making substantial contribution to the world's economy," Swan told the Asian Financial Forum in Hong Kong.

Swan said that Asia's economy will realize great development in the future, as it is buoyed by adequate young labor force.

He urged the region to further optimize financial system to support a sustainable growth. Asia needs a more resilient, deeply integrated and better connected financial system to safeguard the gains it has achieved so far, according to Swan.

"There are innumerous opportunities to work together to unleash free capitals to cross board, to create more prosperity and lift more people out of poverty," said Swan, adding that Asian nations should put in place structural reforms within their financial systems that will support more jobs and growth.

Themed "Asia: Shaping the Next Global Landscape", the 6th Asian Financial Forum (AFF) is held in Hong Kong on Jan 14 and 15. More than 90 global finance ministers, business and financial leaders will discuss Asia's expanding role in the global economy.