BEIJING -- Despite being supportive of innovative financial products like Yu'E Bao, the central bank will take "appropriate measures" to prevent possible risks arising from the sector, Yi Gang, vice governor of the central bank, said Tuesday.

His comments came after similar statement made by the bank's governor Zhou Xiaochuan, saying China will not crack down on Internet finance, but will improve regulations in the area.

Whether authorities should step in to regulate the burgeoning Internet finance has been widely watched as China's lawmakers gather this week in Beijing to discuss the country's social and economic policies.

While financial products like Yu'E Bao, invented by e-commerce giant Alibaba, gained increasing popularity among the public, some financial experts have cautioned against possible risks.

Yi said the central bank will closely watch market changes to prevent possible risks, while warning investors to be more cautious in their choices.

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Internet finance is in, but is banking out?	Yu'E Bao deposits exceed 250b yuan