Yi Gang, China’s central bank governor. (File photo/China News Service)
(ECNS) - Investor sentiment has driven the recent stock downturn and current equity valuations are not in line with sound economic fundamentals, said Yi Gang, China’s central bank governor on Friday.
Yi said in a statement on the central bank’s website that China’s economy has increased momentum in stable growth, made progress in controlling financial risks and has huge potential to further develop via consumer spending.
The central bank supports moves by some local governments to boost liquidity and is studying policies to introduce measures to facilitate company financing, according to Yi.
People's Bank of China will continue to implement a prudent and neutral monetary policy, be proactive in preparing policy tools, maintain liquidity at a reasonable, stable rate, and create a sound economic and financial environment, it was added.
