While entering a new normal of medium-to-high growth, the long-term fundamentals of the Chinese economy remain sound, said Zhou Xiaochuan, Governor of the People’s Bank of China (PBOC) on Thursday.

Thanks tonew emerging driving forces, the Chinese economy is improving in terms of structure and quality, the governor added.

Zhou made the remarks at the fourth G20 Finance Ministers and Central Bank Governors Meeting held in Washington DC. It is the last meeting of this kind under the Chinese presidency.

According to the head of the central bank, China’s economy has been growing within a reasonable range since the beginning of this year with stable commodity prices, sound performance in the job market and moderately climbing consumption.

“Some recent major indexes have shown signs ofan economic rebound. The Chinese economy will continue to make important contributions to the world economy,” Zhou said.

China’s credit-to-GDP gap is increasing, indicating China’s efforts in coping with sluggish world economic recovery and implementing the growth targets of the G20, the bank chief pointed out.

The high savings ratio also equips China with the ability to secure a relativelyfaster-growing investment, he added.

Since China is still a middle income country, there are many growth engines to be tapped, the PBOC Chief stressed, illustrating that that as China trims its overcapacity, moderate credit growth could act as a countercylical tool.

He further explained that the Chinese capital market encountered certain fluctuations last year, and bank credit was used as a tool to maintain financial stability, but now that the market is stabilizing, such reliance is abating.

“As the global economic recovery stepping onto the track of normalization, China will control credit growth as well,” he underlined.

Zhou added that as an effort to strike a balance between the flexibility and stability of the exchange rate, China will continue its efforts in marketization reforms of the exchange rate.

China’s capital outflow pressure also eased recently. Given that the Chinese economy is operating within a reasonable range and its current accounts continue to maintain a surplus, China will witness a more balanced cross-border capital outflow, the governorsaid.

As for the soaring real estate prices in certain Chinese cities, Zhou assured that the Chinese government is taking measures to ensure the healthy development of the housing market.