China's monetary policy must be fine-tuned in a flexible and moderate way to meet the changing economic conditions and to counter-balance the cyclical pressures on the economy, said Chinese central bank governor Yi Gang in an article on Monday.

When the economy is overheated or asset price bubbles emerge, proper tools should be employed to gradually tame down the potential risks and achieve a "soft landing", Yi wrote in the article in China Finance, a magazine published by the People's Bank of China, the central bank.

On the contrary, when facing an economic slowdown or external shocks, monetary policy should react immediately to stabilize the financial market and strengthen public confidence, the governor said.

"To maintain economic and financial stability is always the important target (of monetary policy)," said Yi, who also vowed to continually deepen financial reform and further open the financial markets to foreign investors.

The bottom line, as Yi explained, is to ensure financial service never breaks off and to prevent a burst of systemic financial risks.

"Financial opening-up should never stop," he said.

The opening-up policy has facilitated financial reforms, such as the inclusion of the renminbi into the International Monetary Funds' special drawing rights.

China needs to improve its macro-policy framework to better match the country's status as an issuer of global reserve currency and to enhance the international community's confidence in the renminbi, he added.