(Yicai Global) July 17 -- China should refrain from adopting unnecessarily loose monetary policies, which could only add to leverage, magnify asset bubble and create risks for China's economy, warned Xing Zhihong, spokesman for the National Bureau of Statistics (NBS) that operates directly under China's cabinet, the State Council.

Xing said today during a press conference that China should make its policy consistent and stable and continue to implement a proactive fiscal policy and a prudent monetary policy. Maintaining stable and neutral monetary policy means that China should inject adequate liquidity to the market to maintain economic growth in a reasonable range, and provide a sound financial environment for the supply-side structural reform.

Xing added that during economic development, the central bank applied several monetary policy supply tools to provide necessary liquidity levels and boost the real economy. China will ramp up its reform of the financial system by improving the necessary mechanisms for the monetary policy to stabilize market interest rates and maintain sound economic development.