(Yicai Global) Sept. 24 -- Yi Gang, governor of the People's Bank of China, answered a string of questions about China's financial and economic environment this morning at the first press briefing held to celebrate the 70th anniversary of the People's Republic of China. Below are some of the key points from his responses:

1.  Despite the European Central Bank restarting quantitative easing and the US Federal Reserve cutting interest rates again, China's economic growth remained in a reasonable range and changes in prices were moderate, meaning monetary policy should remain stable and the central bank has no reason to flood the country with cash.

2.  China has ample monetary policy instruments, a moderate interest rate level and large room for policy changes. Current interest rates are relatively low compared with developing countries, and in recent years social financing costs, especially those for private and smaller companies, have remained stable and even declined slightly.

3.  China's monetary policy orientation should reflect the country's own circumstances, and adjustments should be based on the domestic economy. It should be prudent and strengthen counter-cyclical adjustments while avoiding strong stimuli that could have an economy-wide impact.

4.  PBOC has no current timetable for the issuing of an official digital currency. Preparing for a virtual currency requires a host of research, tests and risk assessments and consideration for money laundering, terrorism financing and tax havens in cross-border regulations.

The official digital currency may adopt blockchain technology or could be formed from new technologies evolving from existing electronic payment systems.

The central bank will combine digital currency and electronic payment instruments with the goal of replacing a portion of the M0 money supply, which means substituting cash rather than M1 or M2 money.

The future framework of China's virtual currency will be a two-tier system including the central bank and commercial banks and will not affect the current currency system.

5.  Market access in the banking, securities and insurance sectors has been widened substantially, and the shareholding ratio limit for foreign investors will be completely scrapped next year.

6.  China's small- and medium-sized financial institutions should focus on serving the real economy, private companies and small businesses. Risks should be dissolved through legal, market-oriented means and special attention paid to the rights and interests of ordinary depositors and wealth management investors.