China's financial sector will play a stronger role in boosting the nation's real economy by creating sufficient liquidity and establishing a stable exchange rate for the renminbi.

This was the commitment made by Premier Li Keqiang during his visits to the headquarters of the People's Bank of China, the country's central bank, and the China Construction Bank in Beijing on Monday, the China Daily reported.

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The Premier noted that despite the volatility of financial markets, the reforms being carried out by the Central government have been progressing smoothly and were instrumental in supporting domestic growth.

"Prudent monetary policies must better coordinate with proactive fiscal policies for flexibility and accuracy in financing," Li said, as he cited the challenges being confronted by some regions and industries in the real economy.

Li stressed that China's financial sector must be geared towards supporting the new economy, which is highlighted by the nation's integration with the internet, as well as the rise of innovative enterprises and smart manufacturing.

He likewise called on local financial institutions to provide support to small and medium-sized enterprises and private businesses at a lower cost.

"Commercial banks should support the development of the real economy by financing major infrastructure projects, SMEs and innovation-driven companies," Li said, as he addressed China Construction Bank employees.

To date, the bank has given out 2.8 trillion yuan ($427 billion) in loans to finance infrastructure projects, including new loans of 110 billion yuan for the first quarter of this year, which reflects a year-on-year increase of 86 percent.

The premier also called on domestic banks to continuously provide assistance to companies that are purchasing agricultural produce, and to support agricultural manufacturing as a strategy by China's financial sector to help increase the income of farmers.

TagsPremier Li Keqiang, China Finance Sector, China Finance News, china, China Financial Sector