China's financial risks controllable: official

BEIJING -- China will be able to keep financial risks under control as financial processes develop, a senior official of China's cabinet research office said Saturday.

China's financial system is sound overall, although the overuse of some financial tools could cause certain risks, said Huang Shouhong, deputy director of the State Council Research Office, at a news conference.

The government pays high attention to potential risks, such as bad loan ratio increases, and many financial regulators have also taken specific measures to cushion against the risks, Huang said.

Officials have vowed financial system reform will be more innovative, so that they will support the real economy. The government will encourage financial institutions to offer new consumer credit services to boost consumption, according to a government work report delivered by Premier Li Keqiang at the annual parliamentary meetings on Saturday.

The work report also encouraged banks to use both equity investment and loans to finance companies, a move that is considered helpful especially for early-stage firms seeking investment.