There is no need to buy significant numbers of treasury bonds from the market nor is it necessary to implement quantitative easing, considering that China's monetary policy allows for maneuver, said China's central bank late Thursday in its latest monetary report .

China will continue to maintain a stable and prudent monetary policy, but that doesn't mean unchangeable monetary conditions all the time, said the report.

The report further confirmed that as macroeconomic conditions change, policy will be fine-tuned to counter cyclical volatility.

The country's monetary policy is expected to take effect and help cool over-heated growth and inflation and prevent economic recession and deflation, according to the People's Bank of China, the central bank.

The monetary authority also stressed the importance of balancing internal policies with the external environment and keeping the renminbi exchange rate flexible .

The country's top financial regulatory body will also accelerate the launch of supervision guidelines on large financial holding groups, as well as tighten regulations on internet-based financial companies, to stabilize the financial sector and prevent risks, the central bank said in the report.