Xing Huina:

Thank you, Mr. Lu. I will give the floor to Ms. Li Hongyan for introduction.

Li Hongyan:

Good afternoon, everyone. First of all, I would like to express my heartfelt gratitude for your consistent interest in and support for the administration of foreign exchange. Since the 20th CPC National Congress, SAFE has resolutely implemented the decisions and arrangements made by the Party Central Committee with Comrade Xi Jinping at its core. We have thoroughly exercised a political, people-oriented approach to financial work and continuously promoted reforms and opening up in the foreign exchange sector, providing strong support for high-quality economic development. This is mainly manifested in the following five aspects:

First, the level of cross-border trade facilitation has been further improved. We have continuously optimized the management of trade-related foreign exchange receipts and payments and canceled the administrative licensing for the registration of foreign trade businesses, which is expected to benefit more than 100,000 business entities this year. We have supported the development of new forms of trade, encouraging banks and payment institutions to handle cross-border e-commerce trade settlements based on electronic information. In the first seven months of this year, more than 500 million transactions of this kind were processed, benefiting over 1.2 million micro and small businesses. Additionally, we have enhanced payment convenience for foreigners coming to China, achieving full coverage of foreign currency exchange services in key airports, hotels, scenic areas for cultural tourism and other major venues.

Second, high-quality opening up of capital accounts has been steadily advanced. We have supported the innovative development of science and technology enterprises and extended the policy that facilitates cross-border financing for enterprises from 17 provinces and cities to the entire country. We have optimized and upgraded management policies for cross-border capital centralized operations among multinational corporations, improving their capital allocation efficiency. We have expanded the high-standard institutional opening up of financial markets and revised the Regulations on the Domestic Securities and Futures Investment Capital of Foreign Institutional Investors, further facilitating international investment in the domestic capital market.

Third, the foreign exchange market has seen further advancements in its depth and scope. Currently, China's foreign exchange market offers trading in over 40 currencies, covering all major international foreign exchange products. I'd like to share some data: in the first seven months of this year, the total transaction volume in China's foreign exchange market surged to almost $23 trillion, an increase of 8.7% year on year. In the same period, more than 20,000 businesses engaged in exchange rate hedging for the first time, which enabled more companies to manage exchange rate risks with foreign exchange derivatives.

Fourth, the governance system and governance capacity for foreign exchange have been continuously improved. We have strengthened macroprudential management and have guided market expectations, so as to maintain foreign exchange trading at a rational and orderly manner. We have collaborated with relevant authorities to severely crackdown on illegal and irregular foreign exchange activities to maintain a healthy market environment. Moreover, we have advanced reforms with banks' foreign exchange business in a prudent manner, encouraging banks to reengineer the process for foreign exchange business, so as to set up a comprehensive business framework that includes performing due diligence before the business process, differentiating in-process reviews and post-monitoring reports. By doing this, we are aiming to foster a more open and secure foreign exchange management system.

Fifth, the management of foreign exchange reserves with Chinese characteristics has been further strengthened. China has maintained its foreign exchange reserves above $3 trillion in recent years, making it the world's largest for 19 consecutive years. This has made a positive contribution to stabilizing market confidence and supporting the real economy. 

Going forward, SAFE will thoroughly study and implement the guiding principles of the third plenary session of the 20th CPC Central Committee and will further deepen the reform and high-level opening up of the foreign exchange field. We are committed to the path of financial development with Chinese characteristics and will promote the high-quality development of foreign exchange management, so as to help advance Chinese modernization. 

Xing Huina:

Thank you, Mr. Li, for your introduction. Now the floor is open for questions. Please identify the news outlet you work for before asking your question.