The PBOC's comments echo those of other Chinese government officials in recent weeks, confirming Beijing's concerns over the developing Europe sovereign debt crisis.

In its annual regional financial report published Tuesday, the Chinese central bank also pledged to continue with appropriately loose monetary policy and expansionary fiscal policies, keeping the government's economic stance unchanged.

The PBOC said the foundations of the current recovery in domestic demand are not solid yet and warned of potential risks in the fiscal and financial sectors, without specifying.

The central bank's regional finance report is published annually and focuses mainly on financial development of major cities and provinces in the past year.

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