China's forex market to remain stable on solid economic fundamentals

China's central bank official said Sunday that the country's foreign exchange market and the exchange rate of Chinese currency renminbi, or yuan, would remain stable due to sound economic fundamentals.

The sound and healthy operation of the Chinese economy and finance has been providing solid support for the forex market and the yuan to keep stable at a reasonable level, Pan Gongsheng, deputy head of the People's Bank of China said in an interview with Financial News, a publication run by the central bank.

Currently, China's economy has been operating generally stable as major indicators were kept in a reasonable range, the transformation of growth drivers quickened and the fundamentals of macro economy remained solid, Pan said.

Since the beginning of this year, China's forex market has been operating steadily with rising inflow of overseas capital, increasing forex reserves and stable market expectation, he added.

China will push forward financial opening up as scheduled, keep the continuity and stability of financial opening-up policies and deepen foreign exchange reform, according to Pan.

The liberalization and facilitation of cross-border trade will be enhanced while the legitimate rights and interests of overseas investors will be strictly protected to create a more favorable investment environment.

China has rich experience and ample policy tools to cope with market fluctuations, said Pan, adding that the country would take necessary counter-cyclical adjustment measures to strengthen macro prudent management.

"China has the foundation, capability and confidence to keep the yuan's exchange rate basically stable at a reasonable and balanced level," he said.