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The third plenary session of the 20th CPC Central Committee proposed pursuing high-standard opening up. What measures will SAFE take to implement this? Thank you.

Li Hongyan:

Thank you for your question. Studying and implementing the spirit of the third plenary session of the 20th CPC Central Committee is a major political task for both the current and upcoming periods. The resolution adopted at the session made specific arrangements for opening up and sent a clear signal about expanding high-level opening up. We will fully implement the session's decisions and plans, focusing on three main areas:

First, supporting the real economy and enhancing foreign exchange facilitation. Following principles of market liberalization with effective regulation, we'll strengthen credit risk assessment and improve classified management, making operations easier for honest, compliant enterprises. We'll build an open, diverse, full-functioned and competitive foreign exchange market to better leverage market mechanisms. Focusing on fostering new quality productive forces, we will mainly serve tech innovation enterprises as well as micro, small and medium enterprises, integrating efforts across five key financial areas: technology finance, green finance, inclusive finance, pension finance, and digital finance. We'll extend foreign exchange facilitation policies to more high-quality enterprises, stimulating internal motivation and innovation. We'll promote foreign exchange regulatory innovations to adapt to digital and green trade trends, supporting new models like cross-border e-commerce and overseas warehouses. We'll also improve foreign exchange services for foreigners in China, optimize corporate exchange rate risk management, and expand cross-border financial service platforms to enhance service quality and effectiveness.

Second, promoting reform through opening up and pursuing high-level institutional opening in foreign exchange. We'll focus on improving capital account opening quality, advancing foreign direct investment forex management reforms in an orderly manner, attracting more foreign investment, upgrading and expanding multinational corporate capital pool pilots, and optimizing the qualified foreign investor system. We will further expand high-level opening up pilot programs for cross-border trade and investment, implementing forex management innovation policies first in key areas like free trade zones, Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area. We support the development of international financial centers in Shanghai and Hong Kong and high-quality cooperation under the Belt and Road Initiative.

Third, promoting positive interaction between high-quality development and high-level security, maintaining forex market stability and ensuring national economic and financial security. We will strengthen "macro-prudential + micro-regulatory" management of the forex market, improve monitoring, early warning and response mechanisms for cross-border capital flows, ensure comprehensive regulatory coverage, continue strict crackdowns on illegal activities, and safeguard financial security amid opening up. We'll improve the operation and management of foreign exchange reserves with Chinese characteristics to ensure the safety, liquidity and value preservation and appreciation of reserve assets.

SAFE will implement the session's decisions with a persistent "nail-driving" spirit. We'll enhance reform planning and promotion, strengthen evaluation and follow-up, and support the development of new systems for a higher-level open economy through systemic opening in the foreign exchange sector. Thank you.