People's Bank of China Vice-Governor Su Ning said here on Thursday that China would keep a closer eye on the movement of short-term capital while opening up the banking industry to the outside world.

Given the serious imbalance in international payments, China will establish an updated database to monitor cross-border capital flows more efficiently and will pay special attention to the impact of overseas hot money on the home financing market, Su said at the third World Finance Forum in Beijing.

Su said that the emphasis in the management of China's international payments would shift from foreign currency revenue to cross-border capital flows.

He also urged domestic banks to improve their risk prevention capability in order to protect the interests of clients with small and medium-sized deposits.

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