China and other emerging economies should guard against possible financial turmoil caused by policy decisions being made in developed countries, a senior finance official said on Monday.

Dangers include imported inflation as a result of excessive liquidity amid quantitative easing measures, and burst asset bubbles once those policies are withdrawn, according to assistant Finance Minister Zheng Xiaosong.

"We should improve the relevance and flexibility of macroeconomic policies to properly manage hot money flows, and take measures to ensure the stability of overall pricing levels," Zheng said on the sidelines of the Boao Forum for Asia.