Highlights of central bank governor's news conference

Pan Gongsheng, vice-governor of the People's Bank of China, attends a news conference on the sidelines of the annual session of the National People's Congress in Beijing, March 9, 2018. [Photo by Feng Yongbin/chinadaily.com.cn]

Prudent monetary policy to guide housing market

China will maintain prudent monetary policy to promote the development of the housing market, as risks in the sector remain under control, a vice-governor of the central bank said on Friday.

"Reasonable increases in housing loans are necessary to meet the demand for housing purchases. The amount of repayments for housing loans has risen, but it is still within a reasonable range from a long-term perspective," Pan Gongsheng, vice-governor of the People's Bank of China, said at a press conference on the sidelines of the annual session of the National People's Congress.

In 2017, housing loans increased by 4 trillion yuan ($630 billion), up by 22 percent year-on-year, compared to 12.7 percent year-on-year growth of total yuan loans issued during the same period, according to Pan.

He said the government will closely monitor some aggressive steps taken by some property companies and will strive to keep property markets stable.

China to have 'dynamic approach' on fintech innovations

China will adopt a "dynamic approach" to oversee fintech innovations, the central bank governor said on Friday.

"The central bank has started early to conduct research on new technologies in the financial sector. Future supervisors' attitude will be dynamic, which means regulations will depend on the maturity of technology," Zhou Xiaochuan said at a press conference during the ongoing annual session of the 13th National People's Congress.

"We do not prefer speculative products that make people rich overnight. That is not a good thing," he said.

The central bank has banned initial coin offerings last year as part of effort to prevent risks and prevent illegal fund-raising, according to Zhou.

He said innovators should take cautious steps before introducing new products, and innovations should not go against with current stable financial order.

Off-balance sheet lending won't affect interest rate, says PBOC

It is "normal and beneficial" for China to put some off-balance sheet lending into the framework of balance sheet management and such a structural adjustment will not have a major bearing on interest rate levels, said Zhou Xiaochuan, central bank governor, on Friday.

"The central bank cares more about overall (financial) figures ... and influence of overall indicators on economic growth quality, prices and employment," Zhou said at a press conference during the first session of the 13th National People's Congress.

China has strengthened financial regulation and broadened its regulatory oversight to include products not counted on the balance sheets of financial institutions, such as the so-called wealth management products, to forestall financial risks. Such an adjustment is based on normal regulatory and accounting requirements and will not have a major bearing on overall financial figures, he said.