China's central bank reiterated on Tuesday it would continue to implement the relatively easy monetary policy according to changing situations in a bid to facilitate the ongoing development mode transformation, as well as reinforce the country's sound and relatively fast economic growth.

The national economy is set to remain stable while seeing a relatively quick expansion this year, in general. However, the foundation of the recovery is not solid, the People's Bank of China said in a report focusing on China's regional financial operation.

Further, the report stated that China still needed to improve its ability to be innovative while also continuing to stimulate consumer spending as well as optimizing the country's economic structure amid tough emission cutting targets.

Additionally, the report noted that the potential fiscal risk should not be overlooked. Many uncertainties, including the expanding European sovereign debt crisis, trade frictions, and the stimulus exit, would have a significant impact on China's economy.

The central bank also encouraged the nation's financial institutions to lend to companies in the new energy sector, small enterprises and job-promotion businesses, while asking them to avoid industries with high energy consumption and emissions as well as those with overcapacity.