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Management and supervision personnel in state organs will face fierce punishment, it says, if fake and poisonous medicines and food that falls short of standards slip into the market because of their carelessness and abuses of power.

The PBOC started the repurchase operation shortly after the seven-day Spring Festival holiday, in a bid to address the potential for excessive liquidity and a rapid increase in foreign exchange among financial institutions, analysts said.

In order to cope with an aging society, 3.1 billion yuan (493.3 million U.S. dollars) has been allocated to a pilot program to set up the social service system for the elderly, said the report.

"We will further expand free trade negotiations with other countries and regional organizations. But first, we will promote the early harvest of the results of the Doha Round of trade talks," he said.

Policies should be improved to manage issues brought about by the aging population, as well as support disadvantaged families, the report said.