CCTV:

The Central Economic Work Conference pointed out that China's economic development faces triple pressures of demand contraction, supply shocks, and weakening expectations. What policies and measures will the CBIRC adopt to enable the financial sector to support the stable growth of the real economy? How will the ICBC and other financial institutions implement all these measures? Thank you.

Guo Shuqing:

Indeed. Due to the uncertainties caused by the COVID-19 pandemic at home and abroad, as well as the changes in the environment in other aspects, economic demand is not very strong, with the growth of both consumption and investment being slow. We thereby have to adopt some strong measures. However, we are not talking about a deluge of strong stimulus measures to ease the monetary policies. Fiscal policies will also promote structural adjustments with more specific measures. For the banking and insurance sector in this regard, we hope to promote consumption and expand investment in a targeted manner.  

To be more specific, we will first support the production and operation of micro, small and medium-sized enterprises, especially those struggling with difficulties. 

Second, we will support rural revitalization. The modernization of rural areas remains arduous, although we have achieved the targets and tasks of poverty alleviation. Rural revitalization needs to boost development in various aspects regarding infrastructure and public cause, such as transportation, roads, energy, water supply, power supply, and schools and hospitals. Moreover, the housing conditions of the rural people need to be improved. Ultimately, rural revitalization is one of our priorities.

Third, after soliciting opinions of a dozen departments, the CBIRC and the People's Bank of China will soon release a document that aims to offer financial services to "new urban residents." The "new urban residents" refer to people who live in cities but have not yet obtained an urban hukou or those who have had an urban hukou for less than two or three years. There are more than 300 million such new urban residents, and they have a rigid demand for housing, jobs, starting up businesses, renting or buying a home, child education, and eldercare. We’ve learned from investigation that these people from rural areas are self-employed individuals or migrant workers who are not in permanent employment. According to statistics, the average working time for rural migrant workers in a company or their posts is around six months. However, they are usually required to submit an income certificate while applying for loans, which is quite tricky for them to do. Child education is also a problem for them. As such, we would like to launch a special document to offer advice for the banking and insurance institutions to provide better services for these "new urban residents." This has been a part of our efforts, in general, to deal with the issues related to agriculture, rural areas, and farmers. Besides this, the financial sector needs to continue to shore up the weak links on various fronts, such as the aforementioned micro and small enterprises, rural revitalization, scientific & technological innovation, and green development. Our efforts will follow market and commerce principles. 

Chen Siqing:

Thank you, Mr. Guo. Thanks for the question. Mr. Guo has briefly introduced the support measures of the financial sector, the banking and insurance sector in particular, for the real economy. I'd like to continue to make a general introduction about the measures the ICBC has implemented to support the real economy, especially the manufacturing sector in this regard. 

It is the responsibility of the financial sector to offer services for the real economy, which is also the principle that we must follow. In recent years, under the leadership of the CPC Central Committee and the State Council and the guidance of the CBIRC, we have continued to ramp up efforts to support the development of the real economy, achieving remarkable results.

In 2021, ICBC's new loans hit a new high record, with most of them going to the key areas and weak links of the real economy. The average interest rates of the newly issued inclusive loans and those to manufacturing businesses dropped from the 2020 level. The rates of 2020 dropped remarkably from the previous year's level, and they saw a further reduction in 2021, which has effectively helped the manufacturing enterprises, especially those small and medium-sized companies, in terms of reducing costs and enhancing efficiency.

The ICBC has always been committed to offering services to the industrial and manufacturing sectors. In recent years, in response to the national efforts to strengthen manufacturing, we have stepped up efforts to tackle the pains, difficulties, and impediments in financial services to serve the manufacturing sector better. The measures that we've adopted are as follows:

First, we increased loan support. In the past three years, the ICBC's new loans for the manufacturing industry exceeded 100 billion yuan, 200 billion yuan and 300 billion yuan, respectively. The cumulative growth rate exceeded 40%, and the loan balance exceeded 2 trillion yuan. During the 14th Five-Year Plan period, we will strive to take the lead in breaking the 3 trillion yuan loan balance for the manufacturing industry. 

Second, we helped stabilize and solidify the industrial chain. By the end of 2021, the ICBC's financing balance for core enterprises in the industrial chain in the manufacturing industry exceeded 750 billion yuan, and financing for upstream and downstream manufacturing enterprises in the industrial chain exceeded 300 billion yuan.

Third, we highlighted key areas. We improved the "credit + non-credit" comprehensive service system. We not only provided credit support, but also contributed to the high-quality development of the manufacturing industry by building an "overpass" for manufacturing industry financial services. By the end of 2021, the ICBC's financing balance for strategic emerging industries exceeded 1 trillion yuan, supporting the manufacture of domestically-produced large aircraft, Fuxing high-speed trains and other major machinery made in China.

At the same time, we have also been paying special attention to the development of small- and medium-sized manufacturing enterprises "with high growth potential, advanced technology and strong market competitive edge" in accordance with the national strategic policy, and we continue to provide specialized financial services in a targeted manner.

All of you are very interested in these enterprises with high growth potential, advanced technology and strong market competitive edge. The ICBC has set up a special mechanism, issued a special plan serving these enterprises, and launched a special campaign. The bank has established 11 financial service centers at headquarter-level for scientific and technological innovation enterprises, and established 100 specialist sub-branches of the bank. By the end of 2021, the number of corporate credit customers of enterprises with high growth potential, advanced technology and strong market competitive edge exceeded 15,000, and the financing balance exceeded 100 billion yuan, with a growth rate of more than 18%.

At the same time, we have developed exclusive plans for enterprises with high growth potential, advanced technology and strong market competitive edge. We launched a special loan financing plan for these enterprises to fully meet their financial needs, and proactively granted credit to more than 6,000 such enterprises.

We offered exclusive products. We have accelerated the promotion of intellectual property pledge loans, actively promoted investment and loan linkage, established long-term cooperation with enterprises, actively solved the problems of difficult and expensive financing for enterprises, and helped enterprises avoid premature dilution of equity and achieve stronger and better performance.

Of course, we are also soberly aware that we still have shortcomings in serving the real economy. Going forward, the ICBC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and actively implement the rectifications required by the CPC central inspection teams. We will actively implement the new development philosophy, serve the new development paradigm, and make substantive efforts in serving the real economy as the starting point and objective of our work. We must practice the people-centered development philosophy and unswervingly follow the path of financial development with Chinese characteristics. Thank you.