BEIJING - Chinese financial institutions are completely capable of coping with foreign competition as the sector is freed up, the central bank said on Thursday, after China and the United States signed a initial deal on trade.

The bank will strengthen financial supervision and prevent risks in the process of financial opening, it added in a statement.

(Reporting by Beijing Newsroom; Editing by Clarence Fernandez) ((judy.hua@thomsonreuters.com; 8610-6627 1297; Reuters Messaging: judy.hua.thomsonreuters.com@reuters.net))