Highlights of central bank governor's news conference

Yi Gang, vice -governor of the central bank, attends a news conference on the sidelines of the annual session of the National People's Congress in Beijing, March 9, 2018. [Photo/VCG]

China to reduce reliance on capital support

China will rely less on wide capital support policies for economic growth as it seeks high-quality development, the country's central bank governor said.

"We plan to use the money in a more efficient way as the money supply is sufficient enough," Zhou said at the news conference, adding that it will not point to liquidity crunch.

Both monetary and foreign exchange policies will be adjusted accordingly, he said.

As for whether China will follow US Federal Reserve future steps to raise interest rates, Yi Gang, vice -governor of the central bank, said the PBOC mainly looks at the domestic economic and financial conditions and will make comprehensive consideration.

More access to financial market, but tougher oversight

China will push the opening up of its financial market but it does not necessarily mean loosening financial regulation, the central bank said.

"We have entered the new (development) stage and we can be bolder in opening up market access (to foreigners)," Zhou Xiaochuan said.

The internationalization of the yuan also help push the opening up of the financial market and China will steadily and gradually push forward the capital account convertibility, Zhou said.

Yi Gang, vice-governor of the PBOC, said that the opening up of financial market does not mean China will loosen regulation.

"We will continue to strengthen regulation and improve regulatory mechanism to effectively prevent and resolve financial risks and maintain financial stability," Yi said.

Forex reserve to stay stable

China's foreign exchange reserve will basically remain stable given the stabilizing economic growth prospect and the stable foreign exchange rate, the central bank said.

Zhou Xiaochuan said the country's foreign exchange reserve has been affected by international asset prices but there have not been any major changes in China's balance of international payments.

The country saw its foreign exchange reserve drop to the level of $3 trillion in January of last year and then it increased continuously over the past 12 months, according to Pan Gongsheng.

Pan said China's economic fundamental and foreign exchange rate will stay relatively stable and the country's foreign exchange reserve will also remain basically stable.