CCTV:

Mr. Ni just mentioned the plan to renovate 1 million homes in urban villages and dilapidated residential properties. Could you please elaborate on the arrangements? Thank you.

Ni Hong:

Thank you for your question. As I mentioned earlier, this policy combination includes two new additions. Mr. Xiao just addressed the loan support of 4 trillion yuan, and I will now explain our considerations behind the project for renovating1 million homes in urban villages and dilapidated residential properties.

I mentioned this demand in my introduction. With urban development, buildings age over time, and some eventually become dilapidated. This creates a need for renovation. We conducted surveys in key cities, which revealed demand for renovating 1.7 million houses across 35 major cities. It is clear that this demand is significant and growing in China's297 prefectural-level cities.

This time, we have decided to expand our renovation efforts by an additional 1 million houses. Through a monetization approach, we are increasing policy support, especially for projects with mature renovation conditions, strong community demand for renovation, supported by thorough preliminary groundwork. The first advantage is that monetized settlements enable residents to choose housing types and locations according to their preferences. The second advantage is that it allows for a swift transition to new homes, bypassing the typical waiting period of several months. Third, this approach can eliminate safety hazards, improve living conditions and enhance urban functionality. Lastly, given the significant changes in the current real estate supply-demand dynamics, this policy helps clear existing inventory.

So, what kind of projects are eligible for policy attention and support? I believe two criteria are essential. First, there must be strong resident demand for renovation and significant safety concerns. Second, the plans for the project should be well-developed: the relocation and resettlement plan should facilitate a smooth process and safeguard residents' rights, while the comprehensive financial plan should be balanced overall and avoid new local debt risks.

There are five main policies in place. First, cities at the prefectural level and above are prioritized for support. Second, developmental and policy-based financial institutions can provide special loans. Third, local governments are allowed to issue special government bonds. Fourth, tax breaks and other fiscal incentives are provided. Fifth, commercial banks can offer commercial loans based on project evaluations.

With the backing of these five policies, regions can further plan and implement projects with mature conditions in conjunction with urban renewal efforts. With well-executed preliminary work, we can extend our support beyond the initial 1 million houses. Thank you.