21st Century Business Herald:

SAFE recently announced that it will issue a new batch of QDII investment quotas and push for better coordination between policies for forex management and cross-border RMB business. What progress has been made on the issuance of QDII quotas? And what are the considerations regarding the coverage of institutional types and the allocation of quotas this time? Thank you.

Li Bin:

I would like to invite Mr. Xiao to answer this question.

Xiao Sheng:

Thank you for your questions. QDII quota is a key focus for the public. The QDII scheme is an important institutional arrangement for the opening up of China's financial market, with clear regulations and rules regarding eligibility and quota allocation. For a long time, the State Administration of Foreign Exchange (SAFE) has always adhered to the principle of coordinating development and security, taking into account factors such as the macroeconomic situation, sustained market demand, and the compliance of institutions. In accordance with the principles of fairness and impartiality and following standardized and procedural norms, the SAFE has issued quotas on a regular basis in a prudent and orderly manner. The scale of issuance remains commensurate with the volume of cross-border receipts and payments.

Going forward, the SAFE will better coordinate development and security, advance the two-way opening up of the financial market in a prudent and orderly manner, and ensure a regular issue of QDII quotas to support market institutions with strong investment management capabilities, well-recognized products, high compliance awareness, and advanced management standards to play a better role in QDII business. At the same time, we will further tilt toward public offering products to improve the inclusiveness of QDII business.

Regarding the new round of QDII quota issuance you mentioned, we are currently working diligently on relevant preparations to expedite the issuance of the new QDII quota as soon as possible, so that we can better meet and serve the legitimate, compliant demand for overseas securities investment among domestic residents. Thank you.

Shou Xiaoli:

Let's continue. The last two questions.