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The People's Bank of China (PBOC), the central bank, said Thursday that the financial market will focus on market-oriented reforms this year.

"Market-based interest rate reform will be further promoted," according to the China Financial Market Development Report 2016 unveiled on the central bank's website.

Market-oriented interest rate formation, regulation and transmission mechanism will be improved to enhance central bank's regulatory capacity on interest rates, the report said.

The country will also raise the efficiency of the central bank operations, including standing lending facility, medium-term lending facility and reverse repos.

China will also seek further improvement in market-based exchange rate formation mechanism for its currency to increase the flexibility of the yuan's exchange rate against the U.S. dollar, the report said.

"Efforts will be made to actively guide and stabilize market expectations, balance cross-border capital flows, and keep the yuan's exchange rate basically stable at a reasonable and balanced level," it said.

China will also push forward standardized regulation and steady operation of the financial market, taking measures including promoting the setup of a bond standards committee, advancing healthy development of the asset securitization market, and improving the multi-layered equity market.

"Pilot program of financial opening up and innovation in free trade zones will be moved forward to promote the construction of a green financial system and steadily push forward debt to equity swap on a market-based and legal basis," the report said.