China determined to prevent, defuse financial risks: central bank

BEIJING - China is determined to forestall major financial risks amid stabilizing growth and advancing high-quality development, said a central bank official.

Currently, China's economic and financial operation remains stable, but the uncertainty and difficulty keep growing, said Wang Jingwu, head of the Financial Stability Bureau of the People's Bank of China (PBOC).

During his interview with Financial News, a publication run by the PBOC, Wang said China is facing some major challenges such as the recession risks of global economy in the medium and long term and domestic hidden dangers of "black swans" and "gray rhinos," including hidden debt for local governments and unusual fluctuations of the financial market.

Despite mounting uncertainties, China has made solid progress in curbing financial risks since 2017, said Wang, noting that the macro leverage ratio has been effectively checked, financial services improved to support the real economy, and financial regulation and supervision strengthened.

Wang said the PBOC will continue to fight the battle of preventing and defusing major financial risks in the future and firmly implement measures of central authorities.

China will keep a prudent monetary policy, maintain market liquidity at a reasonably ample level, and take rational steps in structural deleveraging, Wang told the paper.

Efforts will be made in coordinating financial policies to better support the real economy, strengthening real-time monitoring of the stock market, bond market and foreign exchange market and improving weak links of financial supervision and regulation, said Wang.