China should be vigilant about all kinds of financial risks as market development brings new products and new situations, Yang Kaisheng, a special advisor to China Banking Regulatory Commission, said Monday.

Effective measures should be taken to oversee financial transactions and products yet to be covered by government regulation, Yang said at a press conference on the sidelines of the ongoing national political advisory session.

Yang, a political advisor and former president of the Industrial and Commercial Bank of China, the country's biggest lender, cited the government work report delivered by Premier Li Keqiang on Sunday that the government should be alert to the buildup of financial risks and create a "firewall" against them.

He said the government's call to stay vigilant against financial risks was made after full analysis of the situation.

But Yang struck a confident tone on China's financial stability, saying that China's financial risks are "under control" as there are sufficient provisions for bad loans in commercial banks and regulators are working on new supervision measures.

Sunday's report called for attention to financial risks such as non-performing assets, bond defaults, shadow banking and Internet finance.

source: Xinhua