China's central bank said on Friday it wants to see a "healthy" stock market, a day after surging Chinese shares slumped 6 percent in record trading volume as investors fled tighter borrowing rules.
In its 2015 financial stability report, the People's Bank of China (PBOC) warned of a slowing economy and rising debt levels, but repeated its vow to deepen China's nascent financial market through reforms.
The PBOC said in the report released online it was monitoring widely-recognised financial risks in the world's second-biggest economy, including heavily-indebted local governments and a slowing real estate market.
It did not address the dangers of China's soaring shares, saying only that it wishes to promote a "stable" bourse. Chinese stocks have zoomed up 140 percent in the last 12 months.
"We will promote stable and healthy development of the stock market, and continue to expand the main board and the small-and medium boards," the PBOC said, adding that there are plans to set up a new board on the Shanghai stock exchange.
Chinese stocks, which ended flat on Friday after a volatile session, skidded earlier this week as more brokers tightened margin trading requirements and as the central bank drained cash from the money market.