China to keep yuan exchange rate generally stable

China will keep the yuan exchange rate generally stable while continuing with reforms of exchange rate liberalisation, according to a government work report to the national legislature's annual session.

China will continue to improve the market-based mechanism for setting the yuan exchange rate to ensure it remains generally stable at an appropriate and balanced level, said Xinhua news agency citing the report.

The yuan has been heading south since the central bank revamped the foreign exchange regime in August 2015 to let market forces play a greater role in setting the currency's value.

Chinese authorities have on many occasions reiterated that there is no basis for the yuan's continued depreciation, citing factors including the country's large foreign exchange reserve and healthy trade balance.