Financial reforms will help prevent risks

China will further financial reforms and opening-up measures to better serve the real economy and prevent financial risks, according to a meeting of the Financial Stability and Development Committee under the State Council, the country's Cabinet-level financial regulatory body.

The meeting was chaired by Vice-Premier Liu He on Thursday. A statement after the meeting made it clear that China has reached phased objectives in the battle to prevent and resolve major financial risks.

"The previously issued opening-up policies have taken effect, boosting the market confidence and supporting stable economic growth," it said.

Measures, in the next step, should balance the relationship between stabilizing growth and preventing risks, and enhance counter-cyclical adjustments, according to the statement.

The Committee called for further reform measures in the arenas of the capital market, and medium and small banks. And the reform should guide the healthy development of the private fund industry. Financial inclusion and fair competition are encouraged.

The meeting also highlighted that commercial banks, especially for the medium and small-sized ones, need to increase capital through multiple channels.

The long-term mechanism to prevent, resolve and dispose risks should be improved, aiming to stabilize the financial system, as well as sustain the economic and social stability, the statement said.

The Committee has deployed reform measures, including strengthening the function of serving the real economy, improving the fundamental mechanism of capital market, enhancing financial governance and further opening up the financial industry.