People's Bank of China (PBoC) Governor Pan Gongsheng said on Sunday that the central bank will "improve mechanisms for financial risk prevention, warning and management" in order to limit the already "generally controllable" risks. He told Xinhua the PBoC will also protect against risks related to outstanding local government debt, including by controlling new debt and providing emergency liquidity where needed.
Pan said the bank will "focus more on cross-cyclical and counter-cyclical adjustments, and maintain reasonable credit and social financing growth," while keeping interest rates at an appropriate level. "We have the confidence, capability and conditions to ensure the stable operations of the forex market and keep the yuan exchange rate basically stable at a reasonable and balanced level," he added.
