More steps mulled to curb monetary risks

China should make great efforts to identify, warn of and handle financial risks as early as possible so that the risks can be "nipped in the bud", said Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission.

"By making prudential monitoring indicators, conducting pressure tests, straightening up standards and implementing early intervention, we have effectively contained the accumulation of risks in certain areas that have comparatively large hidden hazards of posing a systemic risk to the financial system, such as real estate lending, local government debt and internet finance," said Guo at the Lujiazui Forum 2018 on Thursday.

Financial administrators have prioritized State-owned enterprise and local government deleveraging. With the rapid growth of shadow banking and cross-sector financing, the administrators have started to crack down on irregular financial activities and stemmed the flow of banking and insurance funds from the real economy, the part of the economy that produces goods and services, to the virtual economy, he said.