Shou Xiaoli:

Thank you, Mr. Zheng. The floor is now open for questions. Please first identify the news agency you represent. Now, you may raise your hands to ask questions.

CCTV:

Hello, Mr. Zheng. Your opening remarks mentioned implementing the incremental policy package that was decided on at a meeting of the Political Bureau of the CPC Central Committee, which entails coordination between the fields of fiscal, finance, consumption and investment. Could you please elaborate on the specific measures that will be taken to fulfil this policy package? Thank you. 

Zheng Shanjie:

Thank you for the question. This policy package involves systematic and comprehensive work and has recently gained special attention. I just explained our primary approaches to implementing the incremental policy package. Now, I will give detail on the specific measures for systematically implementing these policies. There are mainly five aspects. 

I. Implementing macro policies with increased effort and improved effectiveness.

First is to strengthen macro policies for countercyclical adjustments. We will enhance the coordination and integration of macro policies in the fields of fiscal, tax revenue, monetary, finance, investment, consumption and income distribution. We will boost the coordination and innovation of policy tools, ensure the timeliness, intensity and effectiveness of policy implementation as well as enact a combination of policies to create a multiplied effect. We will ensure necessary fiscal spending and accelerate spending to significantly boost economic development. We will offer more support to local authorities with debt swaps so as to defuse related risks. We will lower the reserve requirement ratio (RRR), implement significant interest rate cuts and support large state-owned commercial banks in replenishing the core tier-1 capital, thus improving the financial environment for the investment and financing of business entities and for the implementation of macro policies. Recently, we have released policies to lower the RRR and interest rates. Other financial policies are also on the way. 

Second is to accelerate the implementation of major reform measures. The third plenary session of the 20th CPC Central Committee specified more than 300 important reform measures, with related tasks' progressions being gradual and orderly. We will quickly launch a series of reform measures which are ready for implementation to bring tangible and accessible benefits that will contribute to the sustained, healthy development of the economy. For example, we will formulate guidelines for building a unified national market, issue new versions of negative lists for market access, establish mechanisms to boost investment in future industries, improve systems for deepening integration of the real and digital economies, and release opinions on improving the social credit system. Meanwhile, we will increase efforts in attracting and stabilizing investments, seize the initiative by expanding opening up, revise and expand the indexes of industries that we encourage foreign businesses to invest in, launch major projects with foreign investments and further ease visa-free transit policies. 

Third is to improve the consistency of macro policy orientation. We will make good use of related assessment mechanisms to improve the consistency and compatibility of policies from various fields regarding the objectives, tools, intensity, timing and pace of implementation. Before a policy is released, it should go through an assessment to verify consistency as well as thorough research and appraisal. When a policy is being executed or adjusted, the consistency of macro policy orientation should be maintained. After a policy has been implemented, we will review and evaluate its impact in a timely manner. Through all these processes, any inconsistency in macro policy orientation will trigger prompt adjustments or temporary suspension. 

II. Further expanding domestic demand.

In terms of consumption, the key is to combine the promotion of consumption with improved well-being. We aim to increase the income of middle- and low-income groups while taking actions to boost consumption. This involves three aspects of work. First is to reinforce support for special groups. Before National Day, we handed out one-time living allowances to people with special difficulties and orphans. We will increase standards for student subsidies, expand the coverage of policies as well as raise the ceiling of national student loans for college and university students and post graduates. We will also strive to lower loan interests. Second is to continue expanding bulk consumption by promoting large-scale equipment renewals and consumer good trade-ins, which is conducive to releasing demand potential, conserving energy and reducing carbon emissions so as to promote a comprehensive green transformation. Currently, a wide range of detailed measures facilitating consumer good trade-ins have been issued, related funds have been fully allocated and comprehensive policies have been put into place. Retail sales of passenger vehicles have rebounded significantly. Sales of home appliances have ceased to decline and have started to increase. We will intensify the implementation of related policies to further increase the consumption of goods. Third, we will boost the use of services such as care for children and the elderly, two areas of wide public concern. We will support and regulate non-governmental actors with developing related industries, quickly refine the policy system for boosting the birth rate and improve basic public services for childbirth and pediatric medical care. We will cultivate new consumption forms such as digital and green consumption and better meet medium-to-high-end market demands by enhancing supply-side adaptation.

In terms of investments, the focus should be on expanding effective investments to quickly make concrete progress. This involves three aspects. First, we will make full and good use of all kinds of funds that have been allocated this year. For now, a total of 700 billion yuan in investments from the central budget have been fully allocated. The one trillion yuan in ultra-long special treasury bonds, earmarked for implementing major national strategies and building up security capacity in key areas, as well as promoting large-scale equipment renewals and consumer good trade-ins, has been completely channeled to various projects and localities in order to accelerate project progress and fund appropriation. We will accelerate the issuance and use of special-purpose bonds by local governments to facilitate the construction of projects. Second, we will prepare and release in advance the project list for major national strategies and building up security capacity in key areas as well as the investment plan within the central budget for next year. Analysis shows that incremental funds are in high demand in the fields of continued infrastructure construction, granting permanent urban residency to eligible people who have moved to cities from rural areas, high-standard cropland development, underground pipeline construction and urban renewal projects. In the next year, we will continue to issue ultra-long special treasury bonds and optimize their use to strengthen support for implementing major national strategies and building up security capacity in key areas. Before the end of this year, we will release the 100-billion-yuan investment plan within central budget and the 100-billion-yuan project list for implementing major national strategies and building up security capacity in key areas for the coming year, with the aim to support different localities with accelerating preliminary work and starting construction ahead of schedule. Meanwhile, an important effort that is related to this is to accelerate the promotion of people-oriented new urbanization. Third, we will optimize and implement major investment policies. We will step up research on properly expanding the scope of use for funds raised from special-purpose bonds, permitting a greater share of such funds to be used as capital in more sectors and on a larger scale. We will release, at the earliest possible date, specific reform measures to appropriately expand the scope of use for funds raised from the sale of local government special-purpose bonds. We will further motivate non-government investors, effectively implement a new mechanism for cooperation between government and private capital to encourage private investment in new types of infrastructure. 

III. Strengthening support for businesses.

First, we will standardize law enforcement and regulations related to enterprises. We will further regulate administrative law enforcement that is related to businesses, adopting a more inclusive, prudent regulatory approach and a more flexible approach toward law enforcement. Law enforcement must not cross regional boundaries in violation of regulations, nor should it be conducted for profit. Penalties, inspections and seizures must strictly follow legal procedures. We will also promptly issue warnings to regions where penalty and confiscatory income shows abnormal growth and will conduct supervision if necessary. Meanwhile, we are expediting efforts to make a law on boosting the private sector to foster a more favorable environment for non-public sector development.

Second, we will make clear the follow-up arrangements of interim policies in advance. Based on our review, by the end of the year, certain measures, such as supportive tax and fee policies, unemployment insurance related policies to support businesses and stabilize employment, and skill development subsidies, will expire. Relevant departments will determine, based on research and evaluation, whether to extend these policies and for how long. Policies inducive to business operations and healthy development will only be extended, not limited.

Third, we will ensure the proper allocation of production factors. The policy of loan renewals without repayment of principal, previously applicable to small and micro-sized enterprises, has already been extended to medium-sized enterprises. More enterprises will benefit from this policy. Recently, the NDRC and the National Financial Regulatory Administration have jointly established a coordination mechanism to support financing for small and micro-sized enterprises, guiding financial institutions to provide financing support based on market-oriented principles and aiming to ensure that all eligible loans are granted. Meanwhile, we are exploring the possibility of separately managing the energy consumption of certain eligible major projects under the 14th Five-Year Plan and encourage different localities to increase renewable energy consumption by purchasing green electricity and renewable energy certificates.

IV. Promoting the stabilization and recovery of the property market. 

Systematic and comprehensive measures, including strictly controlling new commercial housing developments, optimizing existing housing projects and improving construction quality, will be implemented. We will intensify the use of the "whitelist" policy for housing projects eligible for loans, utilize special-purpose bonds to revitalize idle land and adjust restrictions related to purchasing housing in order to stimulate demand of both first-time homebuyers and those seeking to improve their living conditions. Additionally, we will accelerate the sale of existing unsold homes, lower interest rates on existing housing loans, speed up improvements to policies related to taxation, land and financing, as well as promote the establishment of a new model for real estate development. Policies to lower interest rates on existing housing loans have already been introduced. Some cities have fully lifted restrictions on purchasing housing, while others have further reduced areas of purchasing restrictions or have eased purchasing restrictions. Other policies are actively being planned and implemented. 

V. Striving to bolster the capital market. 

Relevant departments will implement a series of strong and effective measures to attract medium and long-term capital into the market, remove the obstacles for social security, insurance and wealth management funds to invest in the capital market, support mergers, acquisitions and reorganizations of listed companies, and steadily advance the reform of mutual funds. Additionally, we will explore and introduce policies to protect medium and small-sized investors. All of these policies are being accelerated.

Next, we will closely monitor the situation, evaluate the effectiveness of policies and explore new incremental policies in a timely manner. We will conduct further policy research, reserve additional policy options and maintain consistency between this year's and next year's policies and government efforts, solidly promoting economic growth, structural optimization and sustained momentum of development. Thank you.