People's Bank of China Governor Pan Gongsheng said in a report published on Saturday that China is committed to a sustained economic recovery, focused on expanding domestic demand while minimizing financial risks.

According to Pan in the report published on the bank's website, the central bank will implement a policy that is "precise and forceful" while guiding financial institutions to lower real lending rates.

As a result of the publication of third-quarter economic data, the governor has commented on policy for the first time. Reuters reports that it outlines the government's near-term priorities and was delivered to the country's parliament.

The government will take steps to stimulate the capital markets and boost investor confidence, Pan said.

Moreover, he promised to "implement macro-political adjustments in response to changes in the economic situation, strengthen financial supervision effectively, encourage domestic demand, boost confidence, prevent risks, and promote a sustained economic recovery."

As a result of the recent flurry of policy measures, China's economy grew faster-than-expected in the third quarter, while consumption and industrial activity also surprised on the upside.

A stable yuan will be maintained, abnormal fluctuations in cross-border fund flows will be prevented and foreign exchange market stability will be maintained, Pan added.

A risk warning and control system for overseas investment will be established as well as safeguards for the country's foreign currency assets, according to him.

Financial institutions will also be guided to resolve local government debt risks, including debt risks associated with local government financing vehicles, he said.

Additionally, Pan said China would resolve the default risk of bonds issued by big real estate companies, prevent risk contagion in the stock, bond and foreign exchange markets, and ensure the stability of financial markets.