China central bank governor stresses prudent monetary policy

China will continue its prudent monetary policy, strengthen counter-cyclical adjustments, and not resort to "flood-like" stimulus, the country's central bank governor said Tuesday.

China should fine-tune its monetary policy in a pre-emptive way based on economic growth and price changes, said Yi Gang, governor of the People's Bank of China, at a press conference.

The country should also keep its leverage ratio stable to maintain a sustainable level of debt, he added.

Yi also called for efforts to reduce companies' financing costs and promote high-quality economic growth.

Outstanding loans to micro- and small-sized companies amounted to 11 trillion yuan (about 1.57 trillion U.S. dollars) at the end of August, up 23 percent year on year, while those to private companies reached 45 trillion yuan, up 6.7 percent from a year earlier.