Market News International:

Authorities have recently taken action to address the issue of involuted competition, including calls to remove obsolete capacity from certain industries. What effect will this have on the economic environment? Will these measures help China meet its CPI target and support PPI and industrial profits going forward? Thank you.

Sheng Laiyun:

Thank you for your question. In response to the growing trend of involuted competition in some industries and enterprises, the Central Committee for Financial and Economic Affairs held a meeting on July 1 and clearly stated that we will deepen the development of a unified national market, focus on key and difficult points, regulate disorderly low-price competition among enterprises according to laws and regulations, guide enterprises to improve product quality, and promote the orderly phase-out of outdated production capacity. Relevant departments are formulating related measures based on the guiding principles of the meeting to further strengthen the regulation and governance of market order. These policies and measures are conducive to regulating market order, promoting improvements in the relationship between market supply and demand, and facilitating a reasonable rebound in prices. They are also beneficial to improving corporate profits and enhancing vitality, thereby advancing economic restructuring and high-quality development. Thank you.

Shou Xiaoli:

Let's continue. Due to the limited time, we will take two final questions.