.

Read in Chinese

Speakers:

Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission

Hu Xiaolian, chairman of the Export-Import Bank of China

Chen Siqing, chairman of the Industrial and Commercial Bank of China

Tian Guoli, chairman of the China Construction Bank

Bai Tao, Party secretary of China Life Insurance (Group) Company 

Wang Sidong, chairman of China Taiping Insurance Group Company Limited

Chairperson: 

Shou Xiaoli, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date: 

March 2, 2022

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to this press conference held by the State Council Information Office. Today, we are delighted to be joined by Mr. Guo Shuqing, chairman of the China Banking and Insurance Regulatory Commission (CBIRC), who will introduce China's efforts to promote a virtuous cycle of finance and economy amid high-quality development, and answer your questions. Also present at the press conference today are Ms. Hu Xiaolian, chairman of the Export-Import Bank of China (China Exim Bank); Mr. Chen Siqing, chairman of the Industrial and Commercial Bank of China (ICBC); Mr. Tian Guoli, chairman of the China Construction Bank (CCB); Mr. Bai Tao, Party secretary of China Life Insurance (Group) Company; and Mr. Wang Sidong, chairman of China Taiping Insurance Group Company Limited. 

Now, I will give the floor to Mr. Guo Shuqing.

Guo Shuqing:

Thank you, Ms. Shou. Ladies and gentlemen, comrades and friends, good afternoon. I am very happy to be speaking with you about the development of China's banking and insurance sectors. First of all, on behalf of the CBIRC and the other speakers, I would like to express my sincere gratitude to friends from the media for your constant interest and support regarding the financial services sector.

2021 was a landmark year in the history of our Party and our country. The CBIRC and the entire banking and insurance sectors have followed the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; grasped the decisive significance of establishing Comrade Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and defining the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era; strengthened our consciousness of the need to maintain political integrity, think in big-picture terms, follow the leadership core, and keep in alignment with the central Party leadership; stayed confident in the path, theory, system and culture of socialism with Chinese characteristics; upheld General Secretary Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and the Party Central Committee's authority and its centralized, unified leadership; borne in mind the country's most fundamental interests; and implemented the decisions and plans of the CPC Central Committee and the State Council. Following the specific directions of the financial stability and development committee under the State Council, we have risen undaunted to face challenges and acted proactively, thus achieving solid progress on multiple fronts.

First, we have made persistent efforts to forestall and defuse financial risks. With regards to the requirements put forward by General Secretary Xi Jinping at the 2017 National Financial Work Conference, by the end of 2019, substantial progress had been achieved in forestalling and defusing major financial risks, and risks in eight areas had been significantly constrained. In 2020, due to the unprecedented COVID-19 pandemic, the leverage ratio of all national economic sectors rebounded. In 2021, risks in key areas continued to be contained, the macro leverage ratio fell by around 8 percentage points, and asset expansion in the financial system, back to a comparatively low level, re-entered the single-digit range. From 2017 to 2021, high-risk shadow banking worth up to 25 trillion yuan has been dismantled, decreasing by 11.5 trillion yuan within the past two years. Non-performing assets worth 12 trillion yuan were disposed of in the past five years, of which more than 6 trillion yuan was handled within the past two years. The hidden debt of local governments has been reduced. The financialization and bubbles in real estate have been curbed. A number of high-risk enterprises and financial institutions that violated laws and regulations have been dealt with in an orderly manner. All internet-based P2P lenders have been shut down, and the outstanding loan balance has been reduced to 490 billion yuan. A total of 25,000 illegal fundraising cases have been investigated and dealt with. China's resilience against external shocks has been improved.

Second, we have contributed to the national economy's return to steady growth. We have met the reasonable and effective financing needs of the real economy and promoted the stable recovery and virtuous cycle of the national economy. In 2021, RMB loans increased by nearly 20 trillion yuan, and banks and insurance institutions issued 7.7 trillion yuan in bonds. The balance of medium- and long-term loans to manufacturers increased by nearly 30% year on year, loans for scientific research increased by 28.9%, and green credit by 21%. We have strengthened financial services for fields severely affected by the pandemic, and the policy to postpone principal and interest repayments on loans will be smoothly shifted after the extension period. We have provided strong support for the normal operation of the coal-fired power industry. Insurance payments increased by 14.1%. About 11.6 billion yuan of payments were allocated for reconstruction after heavy rains in Henan and Shanxi provinces. COVID-19 vaccine insurance has provided risk protection via over 2.8 billion doses of vaccines.

Third, we have opened up new prospects for inclusive financial services. The volume of financial services for small and micro enterprises has increased and the cost has decreased. In the past four years, the annual average growth rate of inclusive loans to small and micro enterprises exceeded 25% and the interest rate fell by more than 2 percentage points. Innovative products such as online insurance and digital credit have developed rapidly. Inclusive financial services have become more extensive and targeted. Large and medium-sized banks leveraged their advantages in technology and data to continuously improve their ability to serve long-tail customers, remote areas and rural revitalization. In 2021, inclusive loans granted by the five largest banks to small and micro enterprises increased by 41.4%. Serious illness insurance covered 1.22 billion urban and rural residents. Agricultural insurance provided 4.7 trillion yuan of risk protection for 180 million households. We advanced the regulated development of the commercial endowment insurance — the third pillar in China's three-pillar pension system. The pilot area of exclusive commercial endowment insurance has been expanded to the whole country. The pilot program for pension wealth management products has been expanded to "10 places and 10 institutions." Another pilot program for pension savings will be launched soon. Commercial pension services for low- and middle-income groups are also being prepared. According to reports by the World Bank and the International Monetary Fund, China's inclusive financial services have maintained an international leading level.

Fourth, we have continued to deepen the reform and opening-up of the banking and insurance sectors. We have implemented the Three-Year Action Plan for corporate governance, continuously improved the modern financial enterprise system with Chinese characteristics, and integrated Party leadership with corporate governance based on the conditions of different regions and institutions. We have taken province-specific measures to deepen the reform of small and medium-sized banks and rural credit cooperatives according to local situations. Zhejiang Rural Credit Union has been restructured into Zhejiang Rural Commercial Union Bank. We have improved the professional management capabilities of small and medium-sized financial institutions, promoted the development of the professional manager market, and started construction on China's financial talent pool. We have deepened the reform of property insurance and life insurance. The comprehensive reform of auto insurance saved more than 250 billion yuan for consumers. The Solvency Regulatory Rules for Insurance Companies (II) has been formulated. We have revised support systems to open up the financial sector at a higher level. A group of international financial institutions with first-class professional advantages in wealth management, non-performing asset disposal, and pension finance have entered the Chinese market.

Fifth, we have resolutely curbed the disorderly expansion of capital in the financial sector. We have strengthened the supervision of non-financial enterprises investing in financial institutions, and consolidated the firewall between industrial capital and financial capital. We have regularly carried out special campaigns to strengthen oversights of shareholders' equity and related party transactions. We have removed the equity of shareholders who violated rules at high-risk institutions in an orderly fashion, and cracked down on illegal shareholders who maliciously hollowed out financial institutions. Four groups of shareholders in violation of laws and rules have been made public. We have put equal emphasis on regulation and development, and adhered to the principle that financial innovation must be made under prudent supervision. We have given equal treatment to the same types of business and entities, and brought internet-based financial business under regulation in accordance with the law. We have strengthened financial anti-monopoly and anti-unfair competition measures, and regulated business cooperation between licensed institutions and internet platforms to maintain market order.

Sixth, we have continued to advance oversight and regulation in a tough manner. We have exercised full and strict governance over Party members and taken integrated steps to punish financial corruption and prevent and control financial risks. We have ramped up efforts to investigate the financial corruption behind the various problems in the financial sector. We have stepped up efforts to strengthen the rule of financial law, improve the rule of law in the bond market, and unify the basic rules for corporate credit bonds. We have promoted financial stability and accelerated the legislation of financial derivates to manage them with "unified regulations and rules." In 2021, the CBIRC amended and released 14 rules and 44 regulatory documents. In addition, we have made the penalties for violating laws and regulations much more costly. A total of 3,870 punishments were meted out to banking and insurance institutions and 6,005 people responsible were punished last year, with confiscated illicit gains or fines totaling 2.7 billion yuan.

Under the overall deployments of the CPC Central Committee, Party committees or leading Party members groups of the financial authorities and financial institutions at all levels are making great efforts to implement thorough rectification according to the results of the eighth round of disciplinary inspection by the 19th CPC Central Committee. We will fulfill the political responsibilities in this regard. We are now formulating rectification plans, and work to ensure that the plans will be very specific to address all of the problems in a comprehensive manner, following the requirements of the CPC Central Committee to strengthen inspection and rectification and ensure better utilization of the inspection results. We need to make solid efforts to ensure that we can learn by analogy and address both the symptoms and root causes. We will be resolved to push reform, take on responsibility, and establish a long-term mechanism to complete the rectification in a high-standard and strict manner. At the same time, we will also urge the financial enterprises to implement rectification measures and resolve the problems found in fulfilling duties. We will further implement the spirit of the 19th CPC National Congress and the plenary sessions of the 19th CPC Central Committee, uphold the leadership of the CPC Central Committee over the financial work and practice the new development philosophy in a thorough, accurate and comprehensive manner. We will ensure that our rectification in response to the disciplinary inspection will enable us to better serve the real economy, prevent and defuse financial risks, and deepen financial reform and opening up to promote high-quality development of the banking and insurance industry, and greet the convening of the upcoming 20th CPC National Congress with concrete actions.

That concludes my introduction. Next, my colleagues and I would like to answer your questions. Thank you all!

Shou Xiaoli:

Thank you, Mr. Guo. Now the floor is open for questions. Please identify your media outlet before raising your questions. 

CCTV:

The Central Economic Work Conference pointed out that China's economic development faces triple pressures of demand contraction, supply shocks, and weakening expectations. What policies and measures will the CBIRC adopt to enable the financial sector to support the stable growth of the real economy? How will the ICBC and other financial institutions implement all these measures? Thank you.

Guo Shuqing:

Indeed. Due to the uncertainties caused by the COVID-19 pandemic at home and abroad, as well as the changes in the environment in other aspects, economic demand is not very strong, with the growth of both consumption and investment being slow. We thereby have to adopt some strong measures. However, we are not talking about a deluge of strong stimulus measures to ease the monetary policies. Fiscal policies will also promote structural adjustments with more specific measures. For the banking and insurance sector in this regard, we hope to promote consumption and expand investment in a targeted manner.  

To be more specific, we will first support the production and operation of micro, small and medium-sized enterprises, especially those struggling with difficulties. 

Second, we will support rural revitalization. The modernization of rural areas remains arduous, although we have achieved the targets and tasks of poverty alleviation. Rural revitalization needs to boost development in various aspects regarding infrastructure and public cause, such as transportation, roads, energy, water supply, power supply, and schools and hospitals. Moreover, the housing conditions of the rural people need to be improved. Ultimately, rural revitalization is one of our priorities.

Third, after soliciting opinions of a dozen departments, the CBIRC and the People's Bank of China will soon release a document that aims to offer financial services to "new urban residents." The "new urban residents" refer to people who live in cities but have not yet obtained an urban hukou or those who have had an urban hukou for less than two or three years. There are more than 300 million such new urban residents, and they have a rigid demand for housing, jobs, starting up businesses, renting or buying a home, child education, and eldercare. We’ve learned from investigation that these people from rural areas are self-employed individuals or migrant workers who are not in permanent employment. According to statistics, the average working time for rural migrant workers in a company or their posts is around six months. However, they are usually required to submit an income certificate while applying for loans, which is quite tricky for them to do. Child education is also a problem for them. As such, we would like to launch a special document to offer advice for the banking and insurance institutions to provide better services for these "new urban residents." This has been a part of our efforts, in general, to deal with the issues related to agriculture, rural areas, and farmers. Besides this, the financial sector needs to continue to shore up the weak links on various fronts, such as the aforementioned micro and small enterprises, rural revitalization, scientific & technological innovation, and green development. Our efforts will follow market and commerce principles. 

Chen Siqing:

Thank you, Mr. Guo. Thanks for the question. Mr. Guo has briefly introduced the support measures of the financial sector, the banking and insurance sector in particular, for the real economy. I'd like to continue to make a general introduction about the measures the ICBC has implemented to support the real economy, especially the manufacturing sector in this regard. 

It is the responsibility of the financial sector to offer services for the real economy, which is also the principle that we must follow. In recent years, under the leadership of the CPC Central Committee and the State Council and the guidance of the CBIRC, we have continued to ramp up efforts to support the development of the real economy, achieving remarkable results.

In 2021, ICBC's new loans hit a new high record, with most of them going to the key areas and weak links of the real economy. The average interest rates of the newly issued inclusive loans and those to manufacturing businesses dropped from the 2020 level. The rates of 2020 dropped remarkably from the previous year's level, and they saw a further reduction in 2021, which has effectively helped the manufacturing enterprises, especially those small and medium-sized companies, in terms of reducing costs and enhancing efficiency.

The ICBC has always been committed to offering services to the industrial and manufacturing sectors. In recent years, in response to the national efforts to strengthen manufacturing, we have stepped up efforts to tackle the pains, difficulties, and impediments in financial services to serve the manufacturing sector better. The measures that we've adopted are as follows:

First, we increased loan support. In the past three years, the ICBC's new loans for the manufacturing industry exceeded 100 billion yuan, 200 billion yuan and 300 billion yuan, respectively. The cumulative growth rate exceeded 40%, and the loan balance exceeded 2 trillion yuan. During the 14th Five-Year Plan period, we will strive to take the lead in breaking the 3 trillion yuan loan balance for the manufacturing industry. 

Second, we helped stabilize and solidify the industrial chain. By the end of 2021, the ICBC's financing balance for core enterprises in the industrial chain in the manufacturing industry exceeded 750 billion yuan, and financing for upstream and downstream manufacturing enterprises in the industrial chain exceeded 300 billion yuan.

Third, we highlighted key areas. We improved the "credit + non-credit" comprehensive service system. We not only provided credit support, but also contributed to the high-quality development of the manufacturing industry by building an "overpass" for manufacturing industry financial services. By the end of 2021, the ICBC's financing balance for strategic emerging industries exceeded 1 trillion yuan, supporting the manufacture of domestically-produced large aircraft, Fuxing high-speed trains and other major machinery made in China.

At the same time, we have also been paying special attention to the development of small- and medium-sized manufacturing enterprises "with high growth potential, advanced technology and strong market competitive edge" in accordance with the national strategic policy, and we continue to provide specialized financial services in a targeted manner.

All of you are very interested in these enterprises with high growth potential, advanced technology and strong market competitive edge. The ICBC has set up a special mechanism, issued a special plan serving these enterprises, and launched a special campaign. The bank has established 11 financial service centers at headquarter-level for scientific and technological innovation enterprises, and established 100 specialist sub-branches of the bank. By the end of 2021, the number of corporate credit customers of enterprises with high growth potential, advanced technology and strong market competitive edge exceeded 15,000, and the financing balance exceeded 100 billion yuan, with a growth rate of more than 18%.

At the same time, we have developed exclusive plans for enterprises with high growth potential, advanced technology and strong market competitive edge. We launched a special loan financing plan for these enterprises to fully meet their financial needs, and proactively granted credit to more than 6,000 such enterprises.

We offered exclusive products. We have accelerated the promotion of intellectual property pledge loans, actively promoted investment and loan linkage, established long-term cooperation with enterprises, actively solved the problems of difficult and expensive financing for enterprises, and helped enterprises avoid premature dilution of equity and achieve stronger and better performance.

Of course, we are also soberly aware that we still have shortcomings in serving the real economy. Going forward, the ICBC will adhere to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and actively implement the rectifications required by the CPC central inspection teams. We will actively implement the new development philosophy, serve the new development paradigm, and make substantive efforts in serving the real economy as the starting point and objective of our work. We must practice the people-centered development philosophy and unswervingly follow the path of financial development with Chinese characteristics. Thank you.

Economic Daily:

My question is for Chairman Tian of the CCB. Everyone says "if you want housing, go to the CCB," what is your opinion on the current real estate market and its regulatory policies? How do you see risks in the real estate market and future trends? Thank you.

Tian Guoli:

The slogan "if you want housing, go to the CCB" was put forward by the CCB more than three decades ago. At that time, everyone in the country lived in public rental housing, and basically no one was purchasing a house. When we were on the road to housing reform, people struggled to scrape together 50,000 yuan or 100,000 yuan to buy a house. However, people couldn't afford it and were under a lot of pressure. China wanted to develop quickly and so needed to solve the problem of housing marketization, so the CCB took the lead in proposing "if you want to buy a house, go to the CCB." At that time, we designed some financial products along this way of thinking, including the mortgage loans that everyone is now familiar with and has experienced.

With the gradual deepening of market reforms and the increase in the rate of home ownership, it is now basically market-oriented. We have seen a deep-seated problem, that is, the rent-to-purchase ratio needs to be balanced. At present, it is not very balanced. The price-to-rent ratio is basically 1:700. From a financial point of view, it is necessary to design new products to rebalance this problem. Everyone remembers "if you want to buy a house, go to the CCB," but I hope everyone can remember "if you want to rent a house, go to the CCB." It's more cost-effective (to rent a house), given the ratio of 1:700, even in global terms. No matter how much housing prices fall in the future, it will still be difficult to truly solve the issue of housing for the working class, and especially difficult to meet the housing needs of ordinary people, those without savings, migrant workers, and new urban citizens. In the future, we need to rely on rental housing to solve the problem. Since the 18th CPC National Congress in particular, we have emphasized that people are the center, the housing market must be controlled rationally, and there must be a new model. Now the rate of people renting is over 10%, which is already pretty good. Our goal is to push the figure up to more than 30%. Then there will be a fundamental change in the country's real estate market. In other words, it is still the implementation of the saying, "housing is for living in, not for speculation."

The CCB is a major state-owned bank. On the one hand, we should undertake our social responsibilities. On the other, we also have strong professional design capabilities. The CCB already launched a housing rental platform more than four years ago. While the platform is not perfect, it has already covered more than 300 cities across the country. We are working hard to establish relationships with houseowners, and also trying hard to connect with the market and customers. In this regard, the CCB is not engaged in this platform to seek benefits, instead we hope to try and help balance this long-term problem that has troubled society.

As you all know, the real estate issue is a worldwide problem. After Japan's housing bubble burst in the early 1990s, it had a profound impact on its economy. The subprime mortgage crisis in the United States actually stemmed from excess real estate. Fortunately, we have some policy and institutional strengths. But how can we use financial market-oriented means to gradually turn these advantages into economic momentum for sustainable development? We feel stronger and stronger that if we continue to design financial products around this, we will see a new scenario, that is, many residents will gradually become accustomed to renting in the future. You may have noticed that we have some slogans, the first is "if you want to rent a house, go to the CCB" and the second is "housing is for living in, renting is pretty good." In fact, from the perspective of financial management, renting is also a good idea, because now people don't always think that the value of a house will appreciate after buying. That era has now passed. Even if the house appreciates, it is very difficult to cash out. In fact, Europe has some good models for this, and has many financial products for people to manage their money, such as the stock market, bond market and rare metals. People can turn to these as it will be quicker to make money, and they are all relatively good in terms of liquidity, security and being risk-proof. In fact, real estate is not a particularly ideal asset for buying and selling. As the market matures in China, the era of relying on renting will soon definitely come.

Centering on this thought, the CCB put forward the slogan that "If you want to deposit a home in a bank, choose CCB." To be precise, there are some structural problems in the Chinese housing market. The housing vacancy rate is relatively high, and the rental market is unbalanced in two aspects. On one hand, from a landlord's perspective, it's still unclarified how laws would protect their income, and how they would enjoy preferential policies on the tax. Currently, we're discussing these issues with related departments. On the other hand, people may feel it's not so convenient to rent homes. Some leases can be cut short when landlords change their minds. Therefore, renters often lack a sense of stability in their lives.

The CCB put forward another notion that "Long-term rental means long-term stay; long-term stay equals settling down." From the perspective of a new urban resident, if the fixed term could last for three, five, or ten years, it should be enough. Even if you buy homes, you may want to purchase new ones after five to eight years or have new demands. We try to satisfy the needs of new urban residents through these means. There are now over 38 million people registering on the platform of the CCB to conduct transactions of this kind. At the same time, the CCB has a deposit of nearly 130,000 apartments. Sometimes we feel that landlords are not unwilling to rent out homes, since they may not rest assured, apart from taxes and troubles involved. But if the CCB assumes the responsibility, it will help improve their credit. As people have already deposited money in banks, why not homes? At the same time, we use our advantages in this aspect and try to fix long-term periods. During the years when the apartments are deposited in banks, we lock the rent and term to offer a stable home for new urban residents as possible as we can. Gradually, people will get used to renting homes, and it will become a choice and a normal for more new urban residents. We have offered some products in this aspect. We've also set up a housing rental industry alliance which unites sectors like housing design, renovation, and building materials. As for old apartments, the CCB established a comprehensive housing rental system entitled "CCB Jianrong Home." As some neighborhoods were outdated, we employed the best designers to design and renovate them with the best, high-quality, environment-friendly, and branded sanitary ware to lower the cost and offer new urban residents an affordable price. Usually, these run-down areas are located downtown, so the rental should be affordable for them. In Guangzhou, we built homes for sanitation workers through collaboration with the government. They are located in the downtown area, and are just hundreds of steps away from the river bank. These apartments have separate restrooms and kitchens. Though each one is probably about 20 square meters, our exquisite design makes it decent and comfortable. We also have many homes for high-end talents with elaborate designs. The mechanism can be more flexible with rental as the mainstay. It can satisfy the housing rental needs of all strata of society.  

Finally, I would like to emphasize that the CCB does not aim to replace property agencies by doing this, but expects to help more property agencies get involved in the transition of the market, based on our responsibility and integrity, including our financial support capacity, and jointly build a new market supply. We believe it can help find a complete solution for the balance of properties in the long run. If the ratio of rental to purchase reaches 4:6, the real estate market would be very stable, and the concern be eased. The CCB has made some attempts, but we're still far away from the target. I hope the media will pay attention to our practice, come to the CCB and CCB Jianrong Home across China for a visit, and promote our notion. Thank you.

Guo Shuqing: 

Mr. Tian has talked a lot. He has a good idea and encourages us to rent homes. The housing price declined last year, and the bubble and monetization of properties have been reversed fundamentally. The real estate market is not as active as before, but housing is still in demand, especially its rental and renovation. Therefore, it's of great significance to provide such financial services. We had a slogan in the past that "if you want to have homes, go to CCB." Over twenty years ago, applying for individual housing loans was inconvenient. I have my own experience. At that time, I served as the head of the State Administration of Foreign Exchange and applied for the housing provident fund loan from the CCB. It took half a year from my application to the issuance of the loan. However, afterwards, the financial services in real estate improved at a fast speed. Currently, housing mortgages are issued in great number and they account for a high proportion of loans from large banks. We always remind those banks that they should pay attention to risks as many buy homes for investment and speculation. If the home prices fell in the future, or other problems appeared, a huge financial crisis would arise. Some adjustments in the price of real estate and changes in the demand structure are good things for the financial industry. But we hope the adjustments are not that acute or exert huge influences on the economy. We need a smooth transition. That is all I want to add.

Red Star News:

China's import and export of cargoes and services contributed over 20% of GDP last year. In recent years, the financial sector has enhanced support to exports and offered them a lot of credit funds. So my question is, how does the financial industry support high-quality trade development? Are they equal to export subsidies in real terms? Thank you.

Guo Shuqing:

They're definitely not subsidies. They are all commercial banks and should make money. Their profits, especially those of large banks, grew significantly. Let's give the floor to our authoritative expert Ms. Hu Xiaolian to answer the question. 

Hu Xiaolian:

I'll make an illustration for the question. In the past two years, against the backdrop of the severe pandemic globally, China's exports have maintained great momentum, showcasing the strong resilience of China's foreign trade. China's exports have played an active role in stabilizing global products and industries and ensuring a stable supply. It is indeed difficult to achieve the accomplishment as foreign enterprises have also faced many common obstacles, such as the pandemic. Meanwhile, many uncertainties exist in the industrial and supply chains, and transportation also faces difficulties. Recently, the surge of commodity prices, the turbulence of international markets, changes in exchange rates, and the risk of geopolitics have all brought significant challenges for foreign trade enterprises to maintain steady growth.  

The CPC Central Committee and the State Council have attached great importance to it, as keeping foreign trade stable is an important part of ensuring stability on the six fronts and security in the six areas. Offering financial support for foreign trade is the major responsibility and task of the Import-Export Bank of China. We have always put supporting high-quality development of foreign trade as a key component of financial services, and made efforts in the following aspects.

First, we scale up the allocation of financial resources to foreign trade enterprises to ensure their funding needs can be met. 

Second, we prioritize the development of medium, small, and micro foreign trade enterprises. They are significant contributors to China's exports, so we rely on fin-tech to handpick eligible enterprises with export competitiveness as the candidates of our support programs. 

Third, we mainly keep a close watch on the development of the new mode of foreign trade as we render financial support. New foreign trade modes are a new driving force. Such new modes as the centralized procurement, overseas warehouses and cross-border e-commerce pose challenges to financial institutions. Mortgages, a traditional financing means, can hardly meet the funding needs of new foreign trade modes. This requires us to keep innovating products. 

Forth, to prop up foreign trade, we must reinforce its foundations to sharpen the edges of our foreign trade commodities in the global market and strengthen the foreign trade industry. In addition, we have paid extra attention to supporting the development of the foreign trade industry and promoting the quality and efficiency of both upstream and downstream of the foreign trade industry.

The four aforementioned endeavors have given full play to the role of policy-backed finance in bolstering the high-quality development of foreign trade. But, of course, some reporters may ask, what is the difference between policy-backed finance and commercial finance in supporting foreign trade? Just now Mr. Guo said that foreign trade is not a franchise business and policy-backed finance has two characteristics in supporting foreign trade:

First, policy-backed financial support tends to come when foreign trade companies face difficulties. The more dire the situation they face is, the more we need to provide support. So, I think banks can provide solid support for foreign trade enterprises when they are in straits amid an uncertain market.

Second, we have maintained good cooperation with industrial partners. Through industrial collaboration, we can integrate the strength of policy-backed finance and commercial finance. For example, we now support small and micro-sized foreign trade enterprises to turn to on-lending and sign on-lending deals with commercial, financial institutions. Since commercial, financial institutions have many outlets and have built close contact and relationship with many small and micro-sized enterprises, we work with them to provide financial support for such enterprises.

Just now, a reporter asked whether such support is a subsidy. What is a subsidy? According to the definition of the WTO, first, it depends on whether the financial resources provided by financial institutions are indistinguishable or whether financial institutions only provide financial credit support for a particular type of enterprise, a specific sector, or a particular type of products. Second, whether the loan interest rate is far lower than the market average level. According to the definition, the financing support we provide to foreign trade enterprises is by no means a subsidy. Chinese policy banks, especially official export credit institutions, provide support to foreign trade enterprises in the same vein as their foreign counterparts and in accordance with international practice.

The enterprises we support do not belong to a particular type or a particular sector. We support both large and small and medium-sized enterprises; we support both Chinese and foreign-funded enterprises without discrimination. We offer interest rates in line with market principles. Export and import banks also get capital from the financial market. Our financing cost is not low, roughly the same as the bond rates of the ICBC and the CCB in the financial market. We ensure our business covers the cost and runs with a low-profit margin. Under such circumstances, we will not provide subsidies to foreign trade enterprises at interest rates much lower than the market average. This is my answer. Thank you.

Xinhua News Agency:

Just now, Mr. Guo mentioned the need to regulate the third pillar endowment insurance development. You have repeatedly stressed that the insurance industry should stick to its nature of being a means of protection from financial losses. What will the CBIRC do to maintain insurance as a means of protection and bring it into play in the national social security system and pension financial services? Thank you.

Guo Shuqing:

There are two colleagues from insurance companies. I think they can give you a more detailed answer. Let me say something briefly.

China's financial industry grew very fast. We had only about 4 trillion yuan in financial assets in 1990. The figure has exceeded 370 trillion, and bancassurance accounts for the majority. Especially over the last 30 years, the industry has developed very fast at a fantastic speed. Despite some problems, we have not had a full-blown financial crisis, thanks to the system of socialism with Chinese characteristics, the strong leadership of the Communist Party of China, and the China program and the Chinese system in the financial sector. When it comes to endowment insurance, commercial old-age insurance, medical insurance, and health insurance develop very fast. Compared with European and American countries, however, the development of our insurance and banking sector still lags behind. Our total banking assets rank first in the world, surpassing Europe and the United States, and our insurance volume ranks second in the world. However, the depth and density of our insurance are below the world average level, especially the level of developed countries. We have worked hard to develop endowment insurance. You mentioned the three pillars of endowment insurance: basic old-age insurance, corporate annuities as supplementary insurance, and commercial old-age insurance as the third pillar insurance.

In comparison, the third pillar of insurance lags behind the other two pillars and calls for a boost. Since last year, we have taken some measures and made headway, but we can't be too hasty because we have to guard against risks. In this regard, we proceed with the policy laid down by the financial commission of the State Council -- "Jogging with short steps and making gradual progress." Mr. Bai Tao, take the floor, please.

Bai Tao:

Thank you, Mr. Guo. Thank you for your questions. Social security concerns thousands of households, the interests and the well-being of every people, and the long-term stability of our country. The insurance industry can function as a "shock absorber" for the economy and a "stabilizer" for society. We have always stuck to the nature of insurance to protect from financial loss, which is an essential requirement set forth by the CPC Central Committee and the State Council. We have participated in developing the social security system in a comprehensive and multilevel way and tried to build an excellent social security net for the better lives of the people.

The life insurer owned by China Life Insurance (Group) Company is a triple-listed company, and its life insurance products and services cover the whole life cycle of people, including medical support, healthcare, elderly care, education, accidents, and so on. The property insurer's support services against risks cover urban and rural regions, companies and individuals, as well as all fields such as property safety and accident prevention. Our life and property insurance have provided nearly 540 trillion yuan of protection against risks for the whole society, offering services for over 800 million clients. We have given full play to the company's advantages, such as its specialized services, widespread networks, technological capacity, and professional personnel. One of the most important strengths of the company is its huge sales network, and we have made full use of the advantages in these aspects and provided efficient services for social security. For example, in terms of critical illness insurance, we have carried out more than 210 projects and offered services for some 350 million urban and rural residents. We also established "one-stop" connections with over 30,000 hospitals so as to gradually resolve the difficulty of payment settlement for medical treatment incurred outside the provincial-level administrative area where the patient's medical insurance is registered. In addition, for supplementary medical insurance, we have offered services for over 91 million clients so far.

Regarding the "third pillar" of China's pension system you just said, Mr. Guo also mentioned that there is a relatively big gap on this issue between China and Western countries. I'll add more information in this regard. In terms of the development of the "first pillar," we have given full play to our role as China's biggest pension insurance company and provided nearly 30 billion yuan of services to social security funds. In terms of the "second pillar," China Life has made full use of its function as a professional pension insurance company, providing management services for occupational pension in 32 coordination regions and providing services for nearly 30,000 companies for company annuity. Currently, the total amount of company annuity and occupational pension that are managed by us amounted to 1.2 trillion yuan, and we have been working to maintain and increase the value of pension funds for clients. As for the "third pillar," we proactively rolled out long-term care insurance for over 23 million people. I'll add another piece of information. Our life insurer has undertaken over 52 million pieces of insurance business that are associated with elderly care, and the total amount of reserve has reached 1.7 trillion yuan, which can provide fund reserve for pensions of our clients.

In addition, another aspect that draws wide attention is our contribution to the improvement of the health support system. We have fully leveraged insurance funds’ character of the long cyclical period, set up a "Grand Pension Fund," and invested in a group of elderly care institutions in South, North, East, and Southwest China. Currently, these institutions started to operate and provide multi-layered elderly care services in retirement homes, communities as well as the homes of the elderly themselves. Besides, based on the need of the health management, we established a "Grand Health Fund" and invested in over 40 companies. We have integrated service resources concerning health care, medicines, and those in hospitals, and provided health management services for our clients.

In conclusion, China Life will continue carrying out the decisions and deployments being made by the CPC Central Committee and the State Council, comprehensively strengthen capacity building, and further give full play to the role of insurance as a "shock absorber" for the national economy and a "stabilizer" for society. We will also make all efforts to develop a social security system that ensures people's basic needs and is inclusive and diversified so as to make the CPC Central Committee be assured and people satisfied. Thank you.

Bloomberg:

I have two questions. Many European countries have rolled out measures to sanction Russia recently. How will this affect China's financial institutions? Will China follow suit with similar financial sanctions against Russian banks? Secondly, can you update some of the latest progress of the rectification of Ant Group and other fin-tech platforms? What are the next steps? Thank you.

Guo Shuqing:

Regarding your first question, we have paid great attention to the recent armed conflict, or war, between Russia and Ukraine. The Ministry of Foreign Affairs has fully explained China's take on the issue, and our international policies remain consistent. We don't support financial sanctions, especially those proposed unilaterally. This is because such sanctions do not have good effects or much legal basis. We won't join such sanctions and will continue the normal economic, trading, and financial activities with relevant parties. As for how these sanctions will affect China's economy and finance, the impact so far is not clear, and the situation requires further observation. Nevertheless, we believe that, in general, there will not be much impact in the future, for our economy and finance are fairly steady and resilient.

In terms of the second question, not long ago, a special report was released to introduce the situation regarding the rectification of 14 internet platforms that are associated with financial businesses, such as Ant Group. Led by the People's Bank of China, three government bodies, including the CBIRC, the China Securities Regulatory Commission and the State Administration of Foreign Exchange have launched the rectification work since 2020. The rectification has been going well in general. The financial business offered by these platforms is innovative to a certain extent and was not supervised in the past. It takes some time to bring them under supervision. There are many problems during the rectification process, such as how the enterprises and administrative departments identify or certify these products, personal data and privacy protection, and the safeguard of business information and trade secrets, to name a few. These problems concern various aspects and are very complicated, but in general, we are confident in our ability to implement the rectification work well. 

Yicai:

I have a question for Mr. Guo, and this is also a hot issue for many stock investors. In recent years, the stock price of large-scale banks has remained comparatively low, and they have a low price-to-book (P/B) ratio. What do you think of this issue? Will there be any measure taken next to make the stock price of these banks truly reflect its value? Thank you.

Guo Shuqing:

I'd like to invite Mr. Tian Guoli, chairman of the CCB, to take your questions. The CCB is the first among China's four big banks to be listed, and it has done a lot of research and analysis on this issue. Mr. Tian will have the floor.

Tian Guoli:

Thank you for your questions. This issue has attracted many stock investors' attention. To put it precisely, since the subprime mortgage crisis in 2008, investors have been holding a less favorable opinion of the business models of traditional commercial banks. Glories of the past no longer exist, and their P/B ratio dropped from over 2 to less than 1. Under this situation, China and the rest of the world have been closely connected, and to a certain extent, finance has become a business that knows no borders. As for the actual market value of Chinese-funded banks, their average P/B ratio of A-share basically stands at 0.66, and that of H-share is 0.47, higher than Japan's 0.44 and lower than Europe's 0.72 and 1.42 of the U.S. Therefore, what I want to say is that this is actually a problem of how stock investors view traditional finance. For the investment itself, I think this is still lucrative. Take CCB, for example. Since it was listed in 2005, CCB has paid more than 900 billion yuan in dividends. In 2019 and 2016, the dividend yield of A-share reached 4.48% and 5.05%, and that of H-share hit 5.66% and 6.09%. Large-scale banks are not suitable for short-term investment. However, in the long run, our dividend yield has far exceeded that of other financial products, meanwhile, shareholders can have the opportunity to make a profit after holding our stocks. As for the issue of stock price, we still need to keep working on the matter. Despite our weaknesses, there are also aspects of our work that the public is not familiar with. For example, CCB has been working to promote new finance. In fact, CCB has transformed. Using an Internet-based thinking model, we have set up 520,000 inclusive financing facilities in about 80% to 90% of villages across China in a bid to provide financing services for rural residents. We have completely applied new platforms and internet-based logic, and our services have covered almost all villages. The future market potential is huge.

The CCB also excels in fintech. Now, CCB's fintech not only provides system construction for CCB itself but also offers support in system construction for its peers. It is increasingly market-oriented. Now, it is delivering results. I hope that people will pay attention to these new moves by CCB. I believe that, with the help of a positive outlook, this will bring a handsome income to the shareholders. Thank you.

Cover News:

According to data released by the CBIRC, China's shadow banking sector shrank by 4.2 trillion yuan last year. What is the current size of shadow banks? What new measures will the CBIRC take to continue dismantling shadow banks? Thank you.

Guo Shuqing:

Shadow banking was once a serious financial risk for China, which peaked in 2016. Around 25 trillion yuan's worth of risky shadow banks were dismantled in the past five years, but there is still about 29 trillion yuan. The so-called risky shadow banks actually provide loan products, which were also referred to as "quasi-credit" products by industry insiders. There are also other financial products, such as entrusted loans and WMPs, that are not strictly regulated as bank credit. Overall, these risks are completely manageable. In the future, related risks will be gradually resolved from high to low. Take P2P, for example. During the peak period, the transaction volume of P2P reached 2 to 3 trillion yuan each year. Now, the total funds of lenders that have not yet been repaid only stand at over 490 billion yuan. The risk of shadow banks has been greatly reduced.

Of course, as a supervisory department, we will never cease being vigilant because, with the development of the scientific, technological, economic, and financial sectors, there are still many fake "new financial products" and "innovative products." Many are deceptive, even fraudulent products with great risk. So, the CBIRC and all sectors of society should all remain on high alert. Thank you.

The Paper:

According to a meeting of the Political Bureau of the Communist Party of China Central Committee held on Feb. 25, supervision of leading officials and leading groups in the financial sector should be strengthened, and efforts will be made to tackle typical problems such as violations of the central Party leadership's eight-point decision on improving work conduct and the "revolving door." For the CBIRC, what will be done in this regard? Thank you.

Guo Shuqing:

Thanks for your question. All of us here are heads of financial intuitions. The eighth round of disciplinary inspection launched by the CPC Central Committee uncovered various problems in more than 20 institutions in the financial sector, some of which are very serious and need our close attention. I believe that the whole of society is also highly concerned. We will rectify these mistakes in a serious manner, especially violations of the central Party leadership's eight-point decision on improving work conduct that are intolerable. It has been nearly 10n years since the eight-point decision was put forward after the 18th National Congress in 2012. It is very wrong to make such mistakes, and we must resolutely correct them.

You mentioned the "revolving door" problem. There are officials who have left their posts in financial watchdogs, such as in PBOC, CBIRC, CSRC, and SAFE, and then take up jobs in the financial sector or with companies. The key is that there needs to be a clear system to regulate it. We need to watch out as to whether there are direct connections between their two jobs and figure out their specific original and current posts, whether their original government job will make them have improper influence or generate illegitimate benefits for the current job, and whether they have any wrongdoing during their term in the government. We need to investigate and regulate. Earlier, we made some regulations. A former CBIRC employee cannot directly work in an institution that has been regulated by him or has close relations with him. There is a cooling-off period and waiting period after the confidentiality agreement expires. We believe that the system will be more standardized and more rigorous in the future to solve this problem. Thank you.

CRNTT:

It has been three years since the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) was issued. Does the financial sector have any new explorations and breakthroughs in supporting the development of the GBA? Thank you.

Guo Shuqing:

We have been exploring. Mr. Wang is working in Hong Kong; he knows better than us. Mr. Wang, please.

Wang Sidong:

Thank you, Mr. Guo, and this journalist. The construction of the GBA is a major national strategy planned, deployed, and promoted by General Secretary Xi Jinping, and has achieved remarkable results in recent years. The GBA has strong economic vitality and a developed insurance market. There are more than 160 insurance companies in Hong Kong. The depth and density of insurance in Hong Kong rank second in the world. Last year's data has not yet been released. In 2020, Hong Kong's total gross premiums were HK$581.3 billion. There are 25 insurance companies in Macao, and its premium income in 2020 was 26.3 billion patacas. Guangdong is a province that generates huge insurance on the Chinese mainland. Last year, its premium income was 558 billion yuan, accounting for 12.4% of the national market. In May last year, the PBOC and other three ministries and commissions issued a financial support guideline for the development of the GBA, which greatly promoted the interconnection of financial markets and financial infrastructures in the GBA. In September last year, Mr. Guo conducted in-depth research of the GBA and put forward requirements and hopes for the high-quality development of the insurance industry in the GBA. China Taiping is headquartered in Hong Kong. Its headquarters, nine major subsidiaries, and 172 branches are located in the GBA. In 2021, its premiums in the GBA accounted for 23% of the group's total premiums. The GBA has become a strategic highland for the high-quality development of China Taiping.  

In 2019, we took the lead in publishing a white paper on China Taiping's participation in the development of the GBA in Hong Kong. With a focus on serving the GBA, we innovated insurance products to promote the interconnection of residents in the GBA and ensure people's livelihoods in Hong Kong and Macao. For example, we innovatively launched cross-border auto insurance for crossing the Hong Kong-Zhuhai-Macao Bridge and established a three-region integrated insurance and compensation mechanism for Guangdong, Hong Kong, and Macao, enabling policyholders to buy insurance of the three places in either of them. In addition, we have also launched exclusive critical illness insurance in the GBA, as well as cross-border medical insurance to provide insurance services for residents of the GBA. In addition, we have cooperated with the Macao SAR government to establish a catastrophe insurance system to provide catastrophe insurance services for small and medium-sized enterprises in Macao.

We also give play to the advantages of the long-term investment of insurance funds to provide financial support for the GBA construction. For example, we launched a HK$10-billion-worth Greater Bay Area Homeland Development Fund together with China Merchants Group, and China Resources Group. We established a 6.5-billion-yuan equity fund of China Taiping Medical Health Industry in Shenzhen at the end of last year. The current investment projects totaled about 50 billion yuan in the area. Last December, we also launched the first high-quality development forum on the insurance industry in the GBA, promoting the international exchanges on the insurance industry in the area.

During the 14th Five-Year-Plan period, we will continue our focus on Hong Kong and Macao and invest in development of the GBA. A three-year action plan was formulated to serve the GBA. We hope to reflect the effects of the insurance industry's services for the construction through implementing the specific projects there. First, pressing ahead with the policies of allowing "Macao vehicles travelling to Guangdong" and "Hong Kong vehicles travelling to Guangdong;" second, cooperating with regulatory departments to conduct cross-border insurance connections; third, participating in and boosting the construction of cross-border insurance service centers. In addition, we will also set up elderly care communities in the GBA and build medical and health scientific industrial park zones of China Taiping. Furthermore, we will actively intensify the function of international risk management centers in Hong Kong and participate in the development of the Northern Metropolis Development Strategy of Hong Kong and set up the Taiping-Hong Kong insurance and scientific innovation fund. Furthermore, we have recently discussed with the Macao Special Administrative Region government the coordinated operation of the Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park in Hengqin.

In addition, we will introduce more global quality resources to the GBA. Last year, we made meaningful attempts, which actively promoted the Belt and Road Initiative, dual circulation, and better the mechanism for Hong Kong and Macao to integrate into our overall development plan. So we are full of confidence in pursuing high-quality development there. Thank you!

CNBC: 

I have two questions. First, what is the difference between the fund-raising demand of micro, small and medium-sized enterprises (MSMEs) this year and previous years? What are your considerations? Second, what are CBIRC's considerations and opportunities for foreign investment in the virtuous circle and high-quality development of economy and finance?

Guo Shuqing:

Due to time constraints, let me give you a brief answer. We all know that the financing of MSMEs is a global issue while it was well resolved in China. When talking about the 120 million enterprises, we can see that most of them are micro and small enterprises or self-employed individuals. Data from the Ministry of Industry and Information Technology, All-China Federation of Industry and Commerce as well as Association of Small and Medium Enterprises showed that small and micro-enterprises accounted for about 30% in all those got bank loans. At the same time, some figures are higher or lower. In general, approximately 30% of the market entities can get bank loans, which is an outstanding achievement. However, we are not satisfied with this. We will continue to make good use of such means as science, technology, and digitization to better cultivate a customer-centered culture, provide good services, and mitigate difficulties enterprises face in accessing affordable financing.

Regarding the issue of foreign investment, our opening-up policies remain consistent. Since the 19th CPC National Congress, the CBIRC has adopted more than 50 opening-up policies and measures in financial sector. Among them, 34 are targeting the banking and insurance industries, with some being made into regulations. Related laws were amended accordingly and were put into practice. Though some were still under revision, generally, all these policies were carried out. As a result, more and more institutions approved by us started their operation here, such as the foreign-owned insurance companies, foreign shareholding banks, and wealth management companies, among which are internationally renowned institutions. Thank you!

Shou Xiaoli:

We can only take two more questions due to time constraints.

21st Century Business Herald:

Regarding the reforms of the provincial rural credit unions, we know that the Zhejiang Rural Credit Union has been transformed into Zhejiang Rural Commercial Union Bank. What progress has been made in other provinces? Is there any difference in the direction of reforms? Thank you.

Guo Shuqing:

The direction of reforms is the same: establishing a modern enterprise financial system. This applies to small and medium-sized banks, rural credit cooperatives, and provincial- and county-level credit unions. The specific organizational forms may vary from province to province. Some may choose to invest in its member institutions and becomes their largest shareholder, such as the case of the Zhejiang Rural Commercial Union Bank. With provinces each worked out their own plan, the CBIRC is working to guide and improve on them. We noted that some provinces proposed a double-layer structure – provincial holding company holds stakes in county-level credit unions. There are also plans of a three-tier structure and a type featuring several agricultural and commercial banks and business segments in a single province. In addition, a very small number of provincial rural credit unions were small. They were reformed into two or three rural commercial banks and rural credit cooperatives.

In a word, the forms are various. But there is a common requirement that local CPC committees and governments strengthen their management in this regard. We have made the policies clear: We will respect opinions from the locals while strengthening the Party's overall leadership; we will proceed from reality and strengthen the requirements for professional personnel; a professional manager market will be established to let professional people do professional things; and basic qualifications will be required for the management teams. What's more, we will regulate the corporate governance system strictly according to the law. The system should consist of shareholders' meetings, boards of directors, boards of supervisors, and senior management. And more importantly, we need to learn from the past and conduct a strict review on the shareholders to avoid practices such as one shareholder acquiring a controlling stake, misappropriation of funds through related-party transactions, or directly using bank funds and insurance premiums to increase leverage. In a word, the reform of rural credit cooperatives is progressing well, and yet we still need more time. Thank you.

China News Service:

In recent years, there have been two phenomena taking place. On the one hand, excessive credit funds have flowed from banks into "big clients," including big cities, big enterprises, big projects, and some specific sectors. In contrast, credit to private enterprises and small and microbusinesses have been squeezed. But on the other hand, banks have made a big push to provide targeted inclusive loans to small and micro businesses, increasing the risk of non-performing loans and squeezing profits, which influenced shareholder's returns. I would like to know Mr. Guo's point of view regarding these two phenomena. Thank you.

Guo Shuqing:

There is indeed a big problem in banking services of excessive credit funds flowing into "big clients," especially into the real estate sector. We are now reflecting carefully on the problem and summing up experience and lessons. I think my colleagues here also know this too well. Both banks and insurance companies have suffered severe losses due to investments in high-risk enterprises and conglomerates. That's why we should improve our work in this regard.

On the other hand, while big banks and financial institutions were prompted to make their services accessible to small and micro businesses, they have begun to compete with local medium and small banks and financial institutions and squeeze their living space. Through our field trips to different places, we have heard a lot of complaints from rural credit cooperatives, rural commercial banks, and village banks, saying that the ICBC went too far by grabbing clients from them. And the CCB did this, too. Some small insurance companies also blamed big insurance companies, such as China Life and China Taiping. There were various complaints in this regard. Mr. Tian just said that the CCB had agents at more than 500,000 villages. With an iPad and a commission of 1,000 to 2,000 yuan, these agents can provide villagers with essential financial services, including depositing or withdrawing money and transaction services. So we have seen that competition is very stiff. With the development of digitalization, big banks also face the pressure to survive. The number of physical bank outlets nationwide has declined for three consecutive years. In the future, the whole banking system and its business models will embrace profound changes, and so will the insurance industry. Therefore, all we can do is to earnestly study the situations, follow the prevailing trend, keep abreast of the times, constantly promote supply-side structural reforms and improve the structures of banks and insurance companies. Thank you.

Tian Guoli:

I would like to add something here. The inclusive loans provided by the CCB are less than 800,000 yuan on average, compared to over 2 million yuan of loans provided by medium, small and micro banks. There used to be no financial services targeting clients of loans less than 800,000 yuan. Why did I stress "New Finance?" In fact, both the physical outlets and traditional services of the CCB are now declining. Recently, it was reported in Shanghai that people from across the country can now receive services such as issuing certificates and licenses at the CCB's Shanghai outlets without the hassle of travelling back to their hometowns. Another point is that people don't know much about the share price of the CCB. That may result from our lack of publicity and communication with our friends from the media. Here, I ask you a favor to help popularize the relevant information. 

Shou Xiaoli:

Thank you, Mr. Guo. And thanks to our speakers as well as friends from the press for joining us. Your hard work is greatly appreciated. That's all for today's press conference. Goodbye.

Translated and edited by Zhang Rui, Huang Shan, Mi Xingang, Wang Wei, He Shan, Liu Sitong, Zhu Bochen, Wang Yanfang, Zhang Tingting, Li Huiru, He Shan, Li Xiao, Wang Qian, Zhang Liying, Yuan Fang, Gong Yingchun, Yang Xi, Wang Yiming, David Ball, Jay Birbeck, and Tom Arnstein. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.