The People's Bank of China said on Monday it will "uphold innovation" while acting to limit risk in the Internet finance sector.

The central bank's comments followed speculation that moves to limit third-party transfers meant the government was tightening its grip on online finance.

"The central bank will remain committed to the perception, direction and policies of encouraging innovation in the industry, by closely studying the tasks laid out in the communique of the Third Plenary Session of the 18th Central Committee of the Communist Party of China and the latest government work report," the PBOC's online notice said.