UPDATE 1-China c.bank says will strictly regulate financial market trading

* Central bank will step up oversight of internet finance

* Will push forward plans to internationalise currency (Adds comments on yuan, details)

BEIJING, July 25 (Reuters) - China's central bank said on Tuesday that it would strictly regulate financial trading and strengthen the regulation of internet finance as policymakers looks to control risks in what regulators have called "chaotic" financial markets.

China will step up coordinated supervision over its systemically important financial institutions and financial infrastructure, the People's Bank of China said in a statement on its website.

The statement followed an internal meeting at the central bank led by Governor Zhou Xiaochuan.

Chinese President Xi Jinping said last week that the central bank will take on a bigger role in supervising the financial sector, though few details on the functioning of a new financial stability committee are known.

Analysts have interpreted statements on the need to clean up the financial sector as a sign that monetary policy tightening will continue.

However, the central bank on Tuesday reiterated that it will maintain appropriate credit growth and keep liquidity basically stable, while lowering financing costs to the "real economy".

The bank also said that it would steadily push ahead its plan to further internationalise China's currency, while keeping the yuan exchange rate "basically stable at a reasonable level". (Reporting by Beijing Monitoring Desk and Elias Glenn; Editing by Richard Borsuk)