The People’s Bank of China released the following statement on Saturday morning in response to the passage of the U.S. financial rescue package. China’s financial markets opened lower Monday after being closed last week for a national holiday.

Our translation; the Chinese original is here.

The Chinese government has been closely following the development and consequences of the U.S. financial crisis. Recently, the U.S. government’s Emergency Economic Stabilization Act of 2008 has become a focus of world attention. President Hu Jintao has on many occasions said that China hopes for stability in U.S. financial markets and the healthy development of the U.S. economy, which is in the interests of the U.S. and in the interests of China, and is also beneficial to the healthy and stable development of the global economy.

We are pleased to see that, although there were some twists and turns, the U.S. Senate and House of Representatives have finally passed the bill. We hope that this bill can be speedily implemented and achieve positive results, in order to stabilize the U.S. and global financial markets and restore investor confidence. China and the U.S. share common interests in the stability of financial markets. China is willing to strengthen coordination and cooperation with the U.S., and also hopes that countries around the world can work together to overcome difficulties and preserve the stability of international financial markets. As Premier Wen Jiabao has pointed out, in the face of the current crisis, first of all, countries should strengthen cooperation, and affected countries should actively take necessary measures, since only together can we effectively deal with the crisis; second, confidence is particularly important at a time of both financial and economic crisis; and third, for China to maintain strong, stable and rapid economic growth, without big ups or downs, is its greatest contribution to the world economy.

This year, in the face of many negative factors at home and abroad, the Chinese government has responded actively and taken effective measures to overcome difficulties and maintain the trend of steady and rapid economic growth. Overall, the fundamentals of China’s economic development have not changed, the potential for sustained economic growth is great, and the economy continues to develop in the direction envisaged by macroeconomic adjustment policies. China’s financial reform has made significant progress, the reform of the shareholding structure of the state-owned commercial banks has had significant results, and the management of small and medium-sized financial institutions is continuing to improve. Regulatory agencies have strengthened their prudential supervision, and financial institutions in general have enhanced their strength, profitability and ability to withstand risk. Market liquidity is abundant overall, and China’s financial system is sound and safe. We are fully confident in China’s economic development and financial stability.

The People’s Bank of China will make financial and economic policies more predictable, targeted and flexible in order to maintain financial market stability and the sound and rapid development of the economy. The People’s Bank of China and relevant regulatory authorities have already drawn up plans to avoid and reduce the impact of the U.S. financial crisis on China. Regulatory authorities will continue to strengthen both their supervision of and services to financial institutions, and urge financial institutions to strengthen their risk management in order to maintain the normal order of the capital markets. The People’s Bank of China will also continue its close communication and cooperation with other central banks and international financial organizations, and work together to weather the financial crisis. We have the confidence, means and ability to maintain China’s economic development and financial stability and contribute to the stable development of the world economy.

–Andrew Batson

blogs.wsj.com/economics/2008/10/06/chinas-central-bank-welcomes-us-bailout-plan/