China's central bank highlights prevention of financial contagion

BEIJING — Guarding against financial contagion will be high on the central bank's agenda this year, a senior official said Thursday.

It will be challenging to maintain financial stability this year due to global financial uncertainties, mixed risks from foreign markets and rising illegal financial activities, Fan Yifei, deputy governor of the People's Bank of China (PBOC), pointed out at a meeting.

The central bank will enhance investigation to guard against financial risks and improve policy tools to maintain financial stability, such as using the deposit insurance system to deal with financial risks, according to Fan.

The PBOC will continue opening up the financial sector and engage further in global financial governance, he added.

China's financial markets regulators have been improving the supervision and punishment of financial irregularities this year to protect against systemic financial crisis, a key task outlined by the country's top leadership.