CCTV:

My question is about the PBC policies Mr. Zou just introduced for supporting private enterprises. What are the primary considerations behind these policies? How will these policies be implemented moving forward? Thank you.

Zou Lan:

Thank you. We'll have Mr. Xie answer your questions.

Xie Guangqi:

Thank you for your questions. Let me address them. Supporting the development of the private sector is a consistent policy of the CPC Central Committee. The recommendations for the 15th Five-Year Plan also call for developing and expanding the private sector. The private sector is an important driver of innovation, employment and improved livelihoods. We must remain committed to consolidating and developing the public sector while unswervingly encouraging, supporting and guiding the development of the non-public sector. We will fully implement the CPC Central Committee's policies for promoting the development of the private sector.

In recent years, the PBC has continuously strengthened financial support for private enterprises. The financing scale of private enterprises has steadily expanded, with a notable increase in financing efficiency and a steady decrease in financing costs. First, we have actively created a favorable policy environment. We have worked to implement the 25 measures for financial support to the private sector and to lower re-lending rates for agriculture and small business support while increasing the quota. Second, we have continuously improved the capability to provide financial services to private enterprises. We have guided financial institutions in implementing differentiated loan arrangements for small- and micro-sized private enterprises, including in areas such as internal fund transfer pricing, due diligence accountability exemptions and performance evaluation. Third, we have enhanced the financing experience for private enterprises through multiple channels. We have established a fast track for the registration and issuance of debt financing instruments by private enterprises and have supported private enterprises in conducting supply chain financing.

It should also be noted that large private enterprises currently have relatively strong financing capabilities, and there are also relatively abundant financing support policies for small- and micro-sized private enterprises. In comparison, medium-sized private enterprises face weaker access to financing. To this end, the PBC has decided to set up a 1 trillion yuan re-lending facility for private enterprises to further increase financial support for private micro-, small- and medium-sized enterprises. Given that the re-lending policy for the agriculture sector and small businesses already covers private enterprises and has played a positive incentive role, the new re-lending facility for private enterprises will be established under the re-lending facility for the agriculture sector and small businesses. While continuing to support small- and micro-sized private enterprises, the private enterprise re-lending facility will extend its coverage to include medium-sized private enterprises, encouraging and guiding locally incorporated financial institutions to issue loans to small- and micro-sized private enterprises. We have allocated 500 billion yuan from existing re-lending quotas for the agriculture sector and small businesses, plus an additional 500 billion yuan in new quotas. Together, these amount to 1 trillion yuan for the private enterprise re-lending facility. The interest rate, term and other aspects of the private enterprise re-lending facility are consistent with those of the re-lending facility for the agriculture sector and small businesses, while its quota will be managed separately.

Moving forward, the PBC will continue to leverage the incentive and guidance role of monetary and credit policies to constantly enhance financial service capacity and effectiveness for private enterprises. We will accelerate the implementation of measures such as the private enterprise re-lending facility to support private enterprise financing. We will urge financial institutions to further optimize internal policy arrangements and establish long-term mechanisms that encourage them to dare to lend, be willing to lend, be able to lend, and be skilled in lending. We will also improve the credit enhancement system for small- and medium-sized private enterprises. At the same time, we will strengthen policy coordination with fiscal, industrial and other related departments to jointly create a more favorable development environment for private enterprises.

That's all from me. Thank you.