Chinese Premier Wen Jiabao said on Saturday that he believed Myanmar could properly handle problems and safeguard peace and stability in the China-Myanmar border region.

"To develop good-neighborly China-Myanmar relations with mutually beneficial cooperation conforms with the fundamental interests of the two countries and will be conducive to regional peace and stability," Wen told his Myanmar counterpart Thein Sein on the sidelines of the Association of Southeast Asian Nations (ASEAN) summits.

China hopes Myanmar would realize stability, reconciliation and development, Wen said, pledging to offer affordable assistance to the Southeast Asian nation.

While appreciating China's long-term assistance and help, Thein Sein said his country will further strengthen its friendship and cooperation with China.

More than 10,000 Myanmar border inhabitants, who fled into China's southwest Yunnan province in August, had returned home after the end of the fighting in northern Myanmar.