(Yicai Global) Oct. 23 -- China will maintain its strategy of opening up foreign exchange to the world and prevent risks caused by cross-border capital flow to safeguard national economic security, Pan Gongsheng, administrator of the State Administration of Foreign Exchange, said in response to a reporter's question at an open session on the central financial system during the 19th National Congress of the Communist Party of China.

Forex management will stick to these two principles, Pan said, adding that China will aim to facilitate cross-border investment and protect against the risks associated with cross-border capital flow.

The administration's first step will be open up the economic and financial markets and make capital projects more convertible, Pan added. It will then deepen its reform of the yuan exchange rate mechanism and make the rate more flexible, keeping it generally stable.

China has to improve policies on cross-border capital flow under prudent macro management and a micro-market regulatory system to build a sound, open and competitive foreign exchange market, he said.

The nation still needs to strengthen management capacity over forex reserves and support national development strategies for opening up, such as the Belt and Road Initiative.

Pan believes China's foreign exchange market and cross-border capital flow will remain generally stable in future.

"We have reason to believe that with the convening of the 19th National Congress, confidence surrounding China's economic and social development will improve both at home and abroad," he added. "The domestic business environment will also improve as measures for opening up are implemented and cross-border capital flow remains stable."