QE policy helpful: PBOC's deputy governor

"The quantitative easing policy is helpful in strengthening external demand and increasing exports to Europe, as Europe is one of China's main trade partners", said Pan Gongsheng, deputy governor of People's Bank of China, said at a press conference on Friday.

Meanwhile, it will strengthen the value of US dollar and increase the pressure on yuan to depreciate against the dollar.

The global capital flows will face readjustment. Capital outflows from the European countries may come into the US market. But more uncertainties in the capital market will be seen in the near future.

China's central bank understands the action of European Central Bank, and both side will strengthen communication about policy coordination.