China.org.cn | October 18, 2024
Li Yunze:
Thank you, and good morning everyone. It's a pleasure to meet you all. First, on behalf of the NFRA, I would like to extend my sincere gratitude to the media for your long-standing support and assistance in our financial regulatory work.
This year, the NFRA has firmly implemented the major decisions of the Central Committee of the Communist Party of China (CPC) and the State Council. We have taken proactive actions, faced difficulties head-on, and coordinated the promotion of three key tasks: preventing risks, strengthening regulation and promoting development. Solid progress has been made in all areas.
On risk prevention, we have concentrated on key areas and steadily advanced risk mitigation efforts, aiming to create a secure and stable financial environment for economic development. In line with the directives of the Central Financial Work Conference, we have actively promoted reforms and risk mitigation for small- and medium-sized financial institutions, preventing risks from spilling over or spreading. Currently, regions with a high concentration of high-risk institutions have formulated concrete reform and risk mitigation plans, which are being implemented prudently under a "one province, one policy" approach. At the same time, we have guided banks and insurance institutions to actively assist in resolving risks related to the real estate sector and local government debt. Currently, China's financial sector, particularly large financial institutions, is operating in a stable and sound manner, with risks under control. As risks associated with the real estate sector, local government debt, and small- and medium-sized financial institutions are gradually being resolved and alleviated, financial risks are steadily receding. We are committed to firmly maintaining the bottom line of preventing systemic financial risks.
In terms of strengthening regulation, we have focused on addressing both the symptoms and root causes of issues. By driving reform, we have tackled tough challenges and fostered compliance through regulatory frameworks, continually enhancing the sector's sustainability. We have guided the banking and insurance sectors to return to their core functions, refocusing on their primary business to achieve differentiated development and complementary strengths. We have advanced the introduction of a new 10-point guideline for the insurance industry, made timely improvements to asset management regulations, and continuously strengthened governance over non-banking institutions. Additionally, we have optimized and reinforced the foundational management of credit, aiming to resolve deep-seated issues that hinder the sustainable and healthy development of the industry. Financial institutions have been encouraged to streamline their operations, strengthen their core competencies, and actively respond to challenges such as narrowing net interest margins and losses from interest rate spreads. By concentrating on preventing substantive risks, we have effectively implemented the due diligence exemption system, while rigorously investigating and penalizing major illegal and non-compliant activities, creating a fair and just market order.
In terms of promoting development, we have focused on eliminating blockages and bottlenecks, improving the adaptability of the economy and finance and increasing financial services for key fields and weak links. We have strengthened financing guarantees for large-scale equipment upgrades and trade-ins of consumer goods and for implementing major national strategies and building security capacity in key areas, and vigorously supported the development of new quality productive forces in accordance with local conditions. As of the end of this August, loans to high-tech sectors as well as medium- and long-term loans to the manufacturing sector have increased by 13.2% and 15.9% year on year, respectively. We have scaled up micro and small loans, and increased support for private enterprises on an equal footing. Inclusive loans to small and micro enterprises and loans to private enterprises have increased by 16.1% and 9.1% year on year, respectively. We have guided insurance institutions to do their best to provide claims services for major accidents and natural disasters such as torrential rain and typhoons, helping people and business entities that are impacted overcome difficulties. In the first eight months of this year, the insurance industry has paid out a total of 1.55 trillion yuan in compensation, a year-on-year increase of 26.1%.
Next, the NFRA will actively strengthen communication with the market and our friends from the media, as well as respond to social concerns in a timely manner. Previously, Mr. Pan has shared with you relevant policy adjustments. I will have a more detailed briefing on the optimization and improvement of relevant regulatory policies in the Q&A session. We will strive to create a stable, transparent and predictable regulatory policy environment, continue effort and support to improve the quality and efficiency of serving the real economy and contribute more financial strength to high-quality development. Thank you.
Shou Xiaoli:
Thank you, Mr. Li. Now, let's give the floor to Mr. Wu for his briefing.