(Yicai Global) Nov. 2 -- China’s economy is still showing strong resilience despite some challenges and its growth will be maintained within a reasonable range. The Chinese yuan exchange rate will also be stabilized at a rational level, the governor of the People’s Bank of China said today.

“China has a super-large market,” Yi Gang said at the Global Financial Leaders’ Investment Summit held in Hong Kong. “There is still much room for urbanization and demand from middle-class consumers is on the rise, all of which will keep economic growth within a reasonable range.”

The yuan exchange rate will remain relatively stable at a reasonable and appropriate level, Yi said. Due to the sound, long-term fundamentals of China’s economy and prudent monetary policy, the redback has strengthened against other major currencies, although it has depreciated against the greenback.

“China follows a flexible and by-and-large market-determined exchange rate regime with reference to a basket of currencies,” he added.

“Thanks to a large group of engineers and skilled workers, China has built a fully fledged modern industrial system and a high-quality infrastructure network,” Yi said, adding that continuous technological innovation will further fuel economic growth.

China will adhere to prudent monetary policy to enhance support for the real economy, Yi said. Since the start of the year, the central bank has trimmed interest rates to lower the costs of social financing. The PBOC has also strengthened its support for micro and small companies, rural revitalization and low-carbon development through structural monetary policy tools, he added.

The PBOC is taking active measures to spur the sluggish real estate market, Yi said. “We have cut mortgage rates, lowered the threshold for down payments and encouraged banks to introduce special lending terms for developers to ensure the punctual handover of housing projects under construction.”

Recently, there has been a slight uptick in sales and financing in the real estate sector, he said. As China continues to urbanize, the property market will maintain stable and healthy growth.

The PBOC is also supporting the upgrading of equipment as well as infrastructure investment. The effect of these policies will be seen in the fourth quarter, Yi added.

China will also continue to promote the opening-up of the financial sector, focus on creating a market-oriented, law-based and first-class business environment, enhance the protection of intellectual property rights and increase investors’ confidence in the financial markets, Yi said.

Editors: Dou Shicong, Kim Taylor