BEIJING, Nov. 10 -- China will continue to guide its financial sector to better serve the real economy while fending off financial risks, the People's Bank of China (PBOC) governor Pan Gongsheng said.

The central bank will focus more on cross-cyclical and counter-cyclical adjustments, replenish its monetary policy toolbox, and establish a favorable monetary and financial environment to stabilize prices, promote economic growth, expand employment and maintain the balance of international payments, Pan said in an interview with Xinhua.

Pan said efforts would be made to maintain reasonable credit and social financing growth, step up support for major national strategies, key areas and weak links, and lower financing costs for the real economy.

He also pledged efforts to guard against major financial risks and maintain the stable operation of the country's financial markets.

China's economic growth has exceeded market expectations by expanding 4.9 percent year on year in the third quarter of 2023. The International Monetary Fund expected the country's real GDP to grow 5.4 percent this year.

Pan reaffirmed the PBOC's emphasis on stabilizing market expectations, correcting one-sided and pro-cyclical market behavior and firmly forestalling any exchange rate overshooting risks.

"We have the confidence and capability to ensure the stable operation of the forex market and keep the yuan exchange rate basically stable at reasonable and balanced levels," he said.

The PBOC will push forward the internationalization of the yuan, promote trade and investment facilitation and steadily expand the institutional opening up of financial market, Pan said.

The central bank governor said the PBOC will closely monitor financial risks in certain areas, in particular concerning the real estate market, local government debts as well as medium and small financial institutions and illegal financial activities.

Noting that financial risks in the real estate sector are manageable, Pan said the country's continued urbanization process means there is still fairly strong demand for properties to upgrade residence, and that will underpin the sector's long-term stable development.

The Chinese government's debt level remains in the middle and lower range internationally, and it has a lot of resources and measures to dissolve debt risks, he said.

The central bank will also improve mechanisms for financial risk prevention, warning and management, push forward financial stability legislation, accelerate the establishment of the financial stability guarantee fund, and guard against the bottom line of no systemic financial risk.