China's central bank governor Zhou Xiaochuan told the Lujiazui Forum in Shanghai that the central bank will guide financial institutions to maintain reasonable lending policies.

Zhou said that the People's Bank of China will adjust market liquidity in an appropriate manner.

Earlier this week, the central bank took actions to quell fears a recent money squeeze, which pushed interbank money rates to historic high, could expand into a full-blown financial crisis and hurt real economy. But still, the central bank has made it clear and reiterated that there is reasonable level of liquidity and lenders should improve money management and lending practices.