CCTV:

The PBC introduced a series of monetary and credit policy measures in the first half of the year. What is the current status of their implementation? Also, what further measures will the PBC take in the second half of the year to promote sustained economic recovery and improvement? Thank you.

Zou Lan:

Thank you for your questions. I think many friends from the media are also closely following these issues. Since the beginning of this year, the PBC has focused on key economic tasks, strengthened the targeting and effectiveness of monetary and credit policies, adopted comprehensive measures, effectively responded to external shocks and promoted economic recovery and improvement.

In terms of monetary policy, we have maintained an appropriately accommodative monetary policy orientation. On May 7, governor Pan Gongsheng announced a package of 10 monetary policy measures. In terms of quantity, we have employed a mix of monetary policy tools, including RRR cuts, to maintain ample liquidity and enhance medium- and long-term liquidity support. In terms of prices, we have emphasized the role of interest rate tools in regulation, lowering policy rates, reducing rates of structural monetary policy tools and individual housing provident fund loans, cracking down on irregular interest rate practices, and strengthening self-discipline in interest rate management. In terms of structure, we have established relending for service consumption and elderly care, increased the relending quota for technological innovation and industrial transformation, created a risk-sharing tool for technological innovation bonds, and intensified support for key areas of domestic demand such as consumption and technological innovation. The package of policies has been fully implemented within one month, playing a positive role in boosting market confidence, stabilizing expectations, and fostering a favorable monetary and financial environment for promoting economic recovery and improvement. Just now, I introduced the financial data for the first half of the year, which also reflects the effectiveness of these policies.

In terms of credit policy, we have strengthened policy guidance and assessment evaluation. We have continued refining the policy framework, promoting the issuance of the Guidance on Advancing the Five Major Tasks, and guiding the financial system to increase credit investment in technology, green, inclusive, elderly care and digital areas. We improved the assessment and evaluation mechanism for the five major tasks, forming a closed-loop process of policy guidance, funding support and performance evaluation. We leveraged finance to help resolve structural imbalances in key industries, promoting quality improvement and upgrading, and reasonably guaranteed the financing needs of foreign trade enterprises in accordance with market-oriented and law-based principles. We also optimized cross-border payment and settlement services to support stable employment and economic stability. By the end of May, green, technology and inclusive loans grew by 27.4%, 12% and 11.2% year on year, respectively, maintaining a relatively rapid growth rate.

In the next stage, the PBC will further implement an appropriately accommodative monetary policy, ensure the implementation of the various monetary policy measures that have been introduced, and improve the quality and efficiency of financial services for the real economy.

In terms of total volume, we will strike a proper balance in the intensity and pace of policy implementation, maintain ample liquidity, ensure that the growth of social financing scale and money supply aligns with the expected targets of economic growth and overall price levels, therefore continuously creating a suitable financial aggregate environment.

In terms of structure, we will highlight the key directions of financial services for the real economy; focus on technological innovation, consumption expansion and private small and micro enterprises; enhance policy coordination; make full use of various structural monetary policy tools; and intensify support for key areas and weak links.

In terms of transmission, we will strengthen the implementation and supervision of interest rate policies, better leverage industry self-discipline, safeguard the competition order in the banking sector, improve the efficiency of fund use, prevent idle fund circulation, and ensure financial support for the real economy while maintaining the soundness of the financial system.

In terms of improving the monetary policy framework, we will further improve the market-oriented interest rate regulation mechanism, optimize the intermediate variables of monetary policy, continuously improve the monetary policy tool system, and establish a credible, normalized and institutionalized policy communication mechanism, so as to better serve high-quality development.

That is all from me. Thank you.