Capital flight exists, but portion small

The majority of capital flow results from ordinary trade settlement and cross-border investment, while the number of capital flight from China is small, said Zhou.

Zhou said interest rate increase in the US will lure more investment in the US dollars, but is unlikely to open huge rooms for speculation and trigger a big threat.

Such interest rate increase will mean a significant recovery for the US economy, and will also send good signal to the whole world, added the governor.

Zhou said China is flush with international trade and investment, and companies and investors choose on their own the timing to settle their payment.

"The majority of the capital flow is soundly backed by normal trades and investment," he said , adding that capital chasing for the short-term speculative return exists but is not a serious issue for China.