Highlights

China may strengthen financial asset checks

China could update the level of financial asset regulation if necessary to tackle "serious problems" in the country's financial product market, People's Bank of China Governor Zhou Xiaochuan said on Friday.

Zhou said the major regulatory bodies overseeing the banking, securities and insurance sectors, the central bank and the foreign exchange administration have reached a consensus on a way forward, with detailed management policies to come out later.

The level of regulation may be further raised if necessary, he added, without elaborating on what that might involve.

Deleveraging process cannot be rushed

The deleveraging process needs to be implemented steadily, senior officials with the central bank said on Friday.

Yi Gang, vice-governor of the bank, said the deleveraging process cannot be implemented at a fast pace, in order to fend off financial risks. "The first step is to control the leverage level," Yi said.

Central bank Governor Zhou Xiaochuan said the financial sector should refuse to support enterprises with high leverage ratios.

Slower growth forecast for mortgage loans

Mortgage loans are expected to record slower growth this year, while extension of these loans will help to reduce real estate stocks in lower-tier cities. But this may lead to price rises in major cities, central bank Governor Zhou Xiaochuan said, adding that mortgage loans can boost growth of related industries.

"We should adopt a relatively balanced policy (on mortgage loans)," said Zhou.

Xin Zhiming and Wang Yanfei