BEIJING, July 3 (Xinhua) -- China is completely equipped with the favorable conditions to win the battle against major financial risks and counter external risks, according to a committee of the country's top financial regulators.

The country's economy is transforming into one of high-quality development with strongly resilient market entities and significant leeway provided by its massive domestic market, members of the financial stability and development committee under the State Council agreed Monday on its first meeting after reshuffle.

Upholding the principle of pursuing progress while ensuring stability and thinking about worst-case scenarios, the country's financial system has seen positive development in supervisory system and risk-handling, according to a statement released after the meeting.

Structural deleveraging is advancing in a well-ordered manner, highly risky financial businesses are shrinking, rampant expansion of some institutions have been restrained, and financial disorder has been contained, the statement said.

China's financial system is functioning generally steadily, with strengthening market discipline and positive changes in market expectations, according to the statement.

The Monday meeting also reviewed a three-year action plan for forestalling and defusing major financial risks.

The committee was set up last year to oversee financial stability and development and seen as a key step in the country's effort to safeguard financial security and prevent financial risks.

Headed by vice premier Liu He, the committee has named the country's central bank governor Yi Gang as its deputy head and enrolled top banking and insurance regulator Guo Shuqing as well as top securities regulator Liu Shiyu, according to the government website.

The committee will hold regular plenary meetings and special meetings when needed on specific issues, according to the statement.