(Yicai) Jan. 29 -- China should further expand the interconnection of domestic and foreign financial markets to steadily promote the internationalization of the Chinese yuan, according to the governor of the People’s Bank of China.

It is important that China maintains a sound monetary policy, Pan Gongsheng said on Jan. 26. The PBOC will use a variety of monetary policy tools to maintain reasonable and sufficient liquidity, promote the marching of the social financing and money supply scales with the expected economic growth and consumer price index targets, help the steady decline of comprehensive financial costs, and maintain the Chinese yuan exchange rate at a reasonable and balanced level, he noted.

Moreover, Pan stressed the necessity to continue to improve the quality and efficiency of financial services for the real economy, increase financial support to major strategies, key areas, and weak links, guide financial institutions to strengthen service and product innovation, and facilitate capital to enter the real economy.

The PBOC will continue to support Hong Kong and Shanghai in enhancing their status as international financial centers, actively participating in international financial governance, deepening international financial cooperation, and promoting global macroeconomic and financial policy coordination, Pan pointed out.

About the prevention and resolution of financial risks in key areas, Pan said China should promote the construction of financial safety nets, strengthen risk monitoring, assessment, and early warning capabilities, improve the early correction mechanism of financial risks, and give full play to the role of industry and financial stability guarantee funds.

Following the principles of marketization and the law, the PBOC will cooperate with local governments and relevant departments to steadily and effectively resolve risks in key areas and institutions, enhance legal safeguards for financial stability, and accelerate the introduction of laws and regulations, such as the Financial Stability Law, Pan added.

Editor: Futura Costaglione