(Yicai Global) May 29 -- China's financial sector still has plenty of room to open both externally and internally, said the governor of China's central bank, adding that the world's second-largest economy will press on with its efforts to liberalize the sector.

Speaking at the 2018 annual conference of Financial Street Forum in Beijing today, Yi Gang, governor of the People's Bank of China, said that PBOC and other regulators in China have laid out a timetable for financial liberalization, with many policies already implemented and others pushing ahead efficiently.

"We believe that through competition, China's financial sector can provide better services," he said.

In his speech, Yi listed three principles for financial liberalization. China follows the principle of pre-entry national treatment with a negative list in foreign investment in the country and treats equally all market subjects which can enter the market and compete on an equal footing in accordance with the law.

Second, internal and external opening of the financial sector, exchange-rate formation mechanism and capital account convertibility must be coordinated and promoted together. In practice, the three tasks may progress at varying rates, but in general they must be coordinated, said Yi. "This process must be gradual and steady."

Finally, the extent of financial openness must be matched by financial supervision capabilities. International experience shows that only when regulation is in place can financial openness play a positive role in promoting reform and development, Yi said.

The opening of the financial sector to the outside and at home requires the adherence to these three principles, he said. "We must not think that everything will be all right if the door of the country is opened wide and let go."

Editor: Mevlut Katik