China will ensure continuity in its economic policies next year as its economy has shown signs of recovery over the past few months, but policymakers will remain flexible on how to deal with the impact of the international financial crisis, central bank governor Zhou Xiaochuan said Thursday.

On the sidelines of the 18th National Congress of the CPC of China, Zhou said that after adjustments of fiscal, monetary and investment policies, the economy has been stabilizing through the third quarter and October.

The Chinese economy witnessed a slowdown in the second quarter of this year mainly due to fallout from the European debt crisis.

"Policies next year will show continuity from this year, but they'll also be flexible and well-directed toward new problems," Zhou said.

The People's Bank of China cut benchmark interest rates in June and July to give banks more freedom in setting borrowing costs and has lowered reserve ratios for commercial lenders three times since late 2011, freeing an estimated 1.2 trillion yuan ($193 billion).

Cao Yuanzheng, chief economist at Bank of China International, told the Global Times that Zhou's remarks made it clear that the current economic policies will see no major change over the next year. The economy is expected to continue its recovery in the fourth quarter of 2012.

Zhou said there is still too much unpredictability about the ongoing financial crisis, as the World Bank and the IMF have lowered global economic forecasts because of the uncertain development of the euro crisis and the so-called fiscal cliff facing the US.

"That's why the government has to be ready for negative impacts from outside, as the country's exports have been seriously affected so far," Cao said.

Exports grew 30 percent in 2010, 24 percent than in the first half of last year, but no more than 8 percent of the first three quarters of this year.

Also at the same forum, Shang Fulin, chairman of the China Banking Regulatory Commission, said that risks to local government financing vehicles and the property loans are generally controllable.

Reports in recent years accused some local governments of facing insurmountable levels of debt after issuing excessive loans for infrastructure investment.

Shang said the government has been taking measures to reduce the risks facing local financing platforms, and that there had been basically no increase in the total amount of loans by the end of September.

Reuters contributed to this story