China's debt and financial risks are under control. That was the word Monday from the People's Bank of China in its 2016 financial stability report. The central bank said in the report that it would continue to implement prudent monetary and proactive fiscal policies.

The bank said it would maintain reasonable yuan interest rates and 'comprehensively' use monetary policy tools to provide ample liquidity. The report said China's banking sector's debt level continued to grow in 2015. Financing allocated to the agricultural sector and micro-economy improved as well. However, downward pressure on capital quality also picked up with risks still remaining due to shadow banking and other issues.