(Yicai Global) July 6 -- China will continue to deepen reform and expand opening-up policies in the finance sector despite US-China trade frictions, said Guo Shuqing, chairman of China Banking and Insurance Regulatory Commission (CBIRC) in a press conference.

The country will improve corporate governance structure and institutional systems, while regulating the market better to serve the real economy, he said, adding that this is the general direction for the sector despite the trade frictions.

It is unnecessary to fear problems that the current international trade tensions could cause, said Guo. Maintaining confidence is of utmost importance so as to offer reasonable guidance on market expectations and give full play to reform and opening-up.

China's financial system has been on a smooth track since the start of this year, with a secure and stable operation in the banking, insurance and securities industries, Guo said. On the whole, the first half this year has seen steady growth in funds invested in the real economy through the financial sector, especially sharp increases since June.

Listed companies achieved growing profitability despite their relatively low valuations compared with global counterparts from major economies. Global investors are generally optimistic about promising investment returns in the Chinese capital market, he said. A total of CNY131.3 billion (USD19.8 billion) flowed into China's stock market in the first half, and foreign institutional investors pumped CNY308.9 billion into purchases of Chinese government bonds. Slight fluctuations popped up in the credit bond market, but the overall risks are absolutely controllable given that the defaults are far below the global average, said Guo.

China's efforts in adjusting the yuan's exchange rate which started from last year have worked as the yuan entered into a reasonable range with two-way fluctuations, he said. Sound economic fundamentals rule out the possibility of huge yuan depreciation. Looking forward, the increasingly internationalized emerging reserve currency will probably strengthen overall, Guo added.

Editor: William Clegg