Foreign exchange mechanism, stock market liquidity, and cross bank enquiry fees. These are some of the major concerns clouding China's financial sector. Wu Xiaoling, the central bank's deputy governor, gave her opinions on these issues, at an ongoing financial conference in Lanzhou over the weekend.

In comments to reporters at a financial conference, Wu Xiaoling urged Chinese companies to learn how to manage risk rather than counting on the currency to move in a single direction. She said China's economy faces considerable uncertainty, so appreciation of the yuan is not inevitable. Though China has developed a market in currency options over the past year, many firms are reluctant to use it because they lack expertise.

Wu also said the central bank was not concerned about a lack of liquidity in the stock market, which has fallen 10 percent in July. On the contrary, the deputy governor held a positive tone for the present market. She said that some problems in the market, such as the state share holdings and regulatory policies have been solved, while others are being addressed.

She also indicated that authorities were unlikely to look favorably at a lawsuit brought against major banks by a Shanghai resident, who is challenging a new fee for enquiries made at third-party ATM. The cross-bank enquiry fees have drawn mass criticism from the public.

It is the first time a central bank official is voicing opinions in public.

                        Source: CCTV