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Comrades In Charge Of The Central Finance Office Explain In Detail The Spirit Of The Central Economic Work Conference In 2023

2023/12/21 11:20:00 0

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　　 The Central Economic Work Conference was held in Beijing from December 11 to 12. General Secretary Xi Jinping attended the meeting and delivered an important speech, comprehensively summarizing the economic work in 2023, deeply analyzing the current economic situation, and systematically deploying the economic work in 2024.

　　 How to view China's economic trend? What important information will be released from this meeting around the economic work in 2024? The relevant responsible comrades of the Central Finance Office were interviewed by the main media of the Central Committee at the first time after the meeting, to thoroughly interpret the spirit of the Central Economic Work Conference in 2023 and respond to the current hot economic issues.

　　 This year's main expected goals are expected to be successfully achieved,

　　 The favorable conditions are stronger than the unfavorable factors next year

　　 Q: What are the characteristics of this year's economic operation? How to view the internal and external environment facing China's economic development next year?

　　 Answer: General Secretary Xi Jinping's important speech at the Central Economic Work Conference comprehensively summarized the economic work of this year and made a profound analysis of the economic situation of next year. We understand that, to sum up, China's economic operation this year is characterized by "one high, one low and two flat", namely, high growth, stable employment, low prices, and basic balance of payments. The main expected goals are expected to be successfully achieved. First, economic strength has reached a new level. Some institutions, experts and scholars predict that the annual economic growth will be about 5.2%, and the GDP will exceed 126 trillion yuan. This year, China is still the largest engine of global growth, contributing about 1/3 to global economic growth. Second, employment prices were generally stable. The average urban survey unemployment rate dropped to about 5.2%, 0.4 percentage points lower than last year, and the consumer price index rose by about 0.3%. The third is the basic balance of international payments. The import and export volume is basically flat on a year-on-year basis, and the share of exports in the international market is expected to remain at about 14%. Fourth, high-quality development was solidly promoted. Positive progress has been made in building a modern industrial system, new breakthroughs have been made in scientific and technological innovation, the foundation for safe development has been consolidated, and people's livelihood has been effectively guaranteed.

　　 Next year, China's economy will face more opportunities than challenges, and the favorable conditions will be stronger than the unfavorable factors. Internationally, today's world is intertwined with upheavals, the evolution of changes in the past century has accelerated, and international political disputes and military conflicts have erupted in many places. The growth momentum of the world economy is insufficient. According to the prediction of international institutions, the world economy and trade in general next year will not be as good as before the epidemic. Domestically, there are blockages in the big economic cycle. The main problems are: insufficient effective demand, insufficient willingness of residents to consume and enterprises to invest; Some emerging industries have repeated layout and internal competition, and some industries have overcapacity; Social expectations are weak, and enterprises are unwilling to invest or dare not invest; There are still many potential risks. It takes a process to resolve the real estate, local debt and financial risks accumulated over the years.

　　 At present, China's economic development still faces many opportunities. First, we have the most potential super large market in the world. With the gradual improvement of social expectations, high savings will gradually shift to consumption and investment. Second, macro policies will continue to provide support for economic recovery. This year, we will increase the issuance of 1 trillion yuan of national debt, and continue to release the policy effects of reducing reserve requirements and interest rates, reducing taxes and fees next year. Next year, we will also introduce new measures to form a superposition of incremental policies and stock policies, which will strongly promote economic recovery. Third, the policy space is still sufficient. The price of our country is low, the debt level of the central government is not high, and it is conditional to strengthen the implementation of monetary and fiscal policies. Fourth, comprehensively deepen reform and opening up and inject strong impetus. We will deepen the reform of state-owned enterprises, promote the development and growth of the private economy, increase efforts to attract foreign capital, and continue to optimize the business environment, which will continue to stimulate the enthusiasm and creativity of business entities. Fifth, the new round of global scientific and technological revolution and industrial transformation contains new opportunities. Technological breakthroughs in artificial intelligence, commercial aerospace, quantum technology, biological manufacturing and other fields will be accelerated, and green development will accelerate the transformation of production and consumption. These will accelerate industrial reform and provide a broader stage for China's economic development.

　　 On the whole, the basic trend of China's economic recovery and long-term improvement has not changed, and the factors supporting high-quality development continue to gather and increase. We need to enhance confidence and confidence.

　　 Persist in seeking progress while maintaining stability, promote stability through progress, and stand first before breaking

　　 Q: The meeting proposed to strengthen macro-control. What are the considerations for fiscal policy, monetary policy and other macro-control policies next year?

　　 answer : To achieve the main expected goals of economic and social development next year, we understand that we should grasp several points in the work guidance.

　　 First, adhere to the principle of seeking progress while maintaining stability, promoting stability through progress, and standing first before breaking. Stability is the overall situation and foundation. More policies should be adopted to stabilize expectations, growth and employment. Progress is the direction and motive force. We should forge ahead vigorously. What should be established should be actively established. What should be broken should be firmly broken on the basis of establishment. We should constantly accumulate more positive factors to achieve overall economic and social stability. At the same time, we should adjust policies and promote reform in a steady and timely manner. We should not be divorced from reality and eager for success.

　　 Second, the proactive fiscal policy should be moderately strengthened to improve quality and efficiency. We should make good use of fiscal policy space and improve the efficiency of funds and policy effects. We will optimize the structure of fiscal expenditure, strengthen financial support for major strategic tasks of the country, strictly control general expenditure, and truly put funds to the cutting edge. It is necessary to optimize the investment direction and quota distribution of special bonds of local governments, and rationally expand the scope of capital used. We will implement structural tax and fee reduction policies. We should strictly supervise the transfer of payment funds and strictly enforce financial discipline. Enhance financial sustainability and secure the bottom line of "three guarantees" at the grass-roots level.

　　 Third, prudent monetary policy should be flexible, appropriate, accurate and effective. The liquidity should be reasonable and sufficient, and the scale of social financing and money supply should match the expected goals of economic growth and price level. This statement has two new ideas. First, it ranks the social financing scale indicator ahead of the money supply, because this indicator is more closely related to economic growth; Second, the former "nominal economic growth" was changed to "expected target of economic growth and price level", which can better coordinate the target requirements of economic growth and price level, and emphasize that price level is an important regulation target of monetary policy. We should give full play to the dual functions of monetary policy instruments in terms of both quantity and structure, revitalize the stock, improve efficiency, and guide financial institutions to increase their support for scientific and technological innovation, green transformation, inclusive small and micro businesses, and the digital economy. The cost of comprehensive social financing will be steadily reduced. We should keep the RMB exchange rate basically stable at a reasonable and balanced level.

　　 Fourth, we should enhance the consistency of macro policy orientation. We will strengthen the coordination and cooperation of fiscal, monetary, employment, industrial, regional, science and technology, environmental protection and other policies to ensure that they work in the same direction and form a joint force. For example, fiscal policy and monetary policy should strengthen cooperation in the progress of debt conversion, bank capital replenishment, and government bond issuance. The meeting proposed for the first time to include non economic policies into the consistency assessment of macro policy orientation, which is highly targeted to strengthen policy synergy. We should strengthen economic publicity and public opinion guidance, strengthen expectation management, and resonate with the macro-control policies to provide strong support for the sustained recovery of the economy.

　　 The "three carriages" work together, More efforts to attract and utilize foreign capital

　　 Q: At present, the problem of insufficient demand in China is relatively obvious. How can we achieve the coordinated efforts of the "three carriages" next year to promote the economic recovery?

　　 Answer: Next year, we will strengthen demand side management, effectively drive the "troika" of consumption, investment and export, and make productive capacity useful. We must expand domestic demand and optimize supply as a whole, give full play to the advantages of the super large market and strong production capacity, make the domestic circulation based on the domestic demand initiative, and drive the improvement of the quality and level of international circulation. To realize the coordinated efforts of the "three carriages", we need to do a good job in the following aspects.

　　 First, strengthen and improve macro-control, and implement a positive fiscal policy and a prudent monetary policy. The Central Economic Work Conference proposed that next year we should strengthen counter cyclical and cross cyclical adjustment of macro policies, continue to implement proactive fiscal policies and prudent monetary policies, and strengthen innovation and coordination of policy tools. In the fiscal policy, it is proposed to make good use of fiscal policy space, strengthen financial support for major national strategic tasks, and reasonably expand the scope of local government special bonds used as capital. In the monetary policy, it is proposed to match the social financing scale and money supply with the expected goals of economic growth and price level, so as to promote the stable and moderate decline of social comprehensive financing costs. By implementing these macro policy requirements and strengthening the consistency of macro policy orientation, we can effectively expand aggregate demand and promote the effective improvement of the quality and reasonable growth of the economy.

　　 Second, better coordinate consumption and investment, stimulate potential consumption, expand effective investment, and form a virtuous circle of mutual promotion between consumption and investment. Next year, efforts should be made to promote residents' consumption from recovery after the epidemic to continuous expansion. We should vigorously develop new types of consumption such as digital consumption, green consumption and health consumption, actively cultivate new consumption growth points such as smart home, entertainment tourism, sports events, and domestic "trendy goods", and drive investment in related industries and consumption scenarios. We should take the improvement of technology, energy consumption, emissions and other standards as a guide to promote large-scale equipment renewal and consumer goods trade in. This aspect has great potential and is an inevitable requirement for achieving high-quality development and people's high-quality life. Appropriate policy support and guidance can release great demand. We should give full play to the driving and amplifying effect of government investment, focus on supporting key core technology research, new infrastructure, energy conservation, emission reduction and carbon reduction, cultivate new drivers of development, and accelerate the construction of weak areas and major projects in the economy and society. We should implement a new mechanism for cooperation between the government and social capital, and support social capital to participate in the construction of new infrastructure and other fields.

　　 Third, actively stabilize the basic foreign trade market and accelerate the cultivation of new foreign trade drivers. We need to expand intermediate trade, service trade, digital trade, and cross-border e-commerce exports. We should consolidate the confidence of foreign-funded enterprises in their development in China, improve the resilience and security level of the industrial chain supply chain, give full play to the advantages of a sound industrial supporting system, support foreign-funded enterprises to continue to "stay in China and serve the world", and deeply participate in the international cycle.

　　 Q: Since the beginning of this year, the scale of China's foreign investment has declined, and there is speculation that "foreign capital will withdraw from China". What are the reasons for the fluctuation of the scale of investment attraction and what is the future trend? What are the next steps to attract and make better use of foreign capital?

　　 Answer: Influenced by the continuous downturn of global transnational direct investment and high base in the same period last year, the scale of foreign investment attracted by China in the first 10 months of this year dropped by 9.4% year on year, but the amount is still at a historical high level, especially foreign direct investment in the service industry and high-tech manufacturing industry accelerated, the number of newly established foreign funded enterprises increased by 32.1%, the actual use of foreign capital in high-tech manufacturing industry increased by 9.5%, Canada Investment in China by developed countries such as the United Kingdom, France, Switzerland and the Netherlands increased significantly.

　　 There are many reasons for the recent fluctuations in foreign investment data, including both economic and non economic factors. First, the external environment has undergone profound changes. Geopolitical risks have risen significantly. Some countries have promoted the return of industries and funds and introduced restrictions on investment in China. Developed countries and emerging economies have introduced strong preferential policies one after another, and the international competition for attracting investment has become increasingly fierce. Second, the impact and impact of the epidemic. The epidemic has blocked offline investigation and communication, resulting in a lack of understanding of China's actual situation by multinational companies, and even a certain degree of misunderstanding and misreading, affecting investment decisions. Third, with the change of domestic development stages, labor costs have risen and low-cost advantages have weakened. The gradient transfer of some labor-intensive industries due to changes in comparative advantage is determined by economic factors and normal.

　　 Looking ahead, we still have many favorable conditions for attracting foreign investment. First, the attraction of the super large market. China's per capita GDP has exceeded 12000 US dollars, the middle-income group has more than 400 million people, and the world's largest and growing domestic market has formed a huge and growing domestic market, which will provide broad market space and cooperation opportunities for enterprises from all countries. Many foreign-funded enterprises said that the Chinese market is not an optional question, but a must answer question. The second is the support of a complete industrial system. China is the only country in the world with all 41 industrial categories, 207 industrial sub categories and 666 industrial sub categories listed in the UN Industrial Classification. Its industrial supporting capacity and integration advantages are incomparable to other countries. Third, the convergence of the new development pattern. In the process of building a new development pattern in China, foreign-funded enterprises play a unique role as a bridge in connecting domestic and international circulation and optimizing the allocation of resource elements. They have great potential and broad prospects.

　　 Utilizing foreign capital is an important part of China's basic national policy of opening up to the outside world. We should make greater efforts to attract and utilize foreign capital. First, steadily promote institutional opening, actively benchmark international high standard economic and trade rules in combination with high-level economic and trade agreement negotiations, and deepen reform in relevant domestic fields. We will completely eliminate restrictions on foreign investment access in the manufacturing industry, expand the opening up of telecommunications, medical care and other service industries, strive to remove hidden barriers that affect foreign investment access, and ensure that domestic and foreign investment enters the fields outside the negative list equally according to law. Second, actively respond to the demands of foreign-funded enterprises, earnestly solve the problems of cross-border data flow, equal participation in government procurement, etc., implement national treatment for foreign-funded enterprises, promote fair competition, and continue to build a market-oriented, legalized, and international first-class business environment. The third is to further facilitate the exchange of Chinese and foreign personnel. On the basis of the recently announced unilateral visa exemption policy, mutual visa exemption arrangements, and the acceleration of the resumption of international flights, we will effectively break through the blocking points and improve the facilitation level of foreign personnel's business, study, and tourism in China.

　　 New quality productivity is marked by the improvement of total factor productivity

　　 Q: How to understand the connotation of the concept of new quality productivity, and how to accelerate the cultivation of new quality productivity?

　　 Answer: General Secretary Xi Jinping recently went to local places for investigation and research, and repeatedly proposed to accelerate the formation of new quality productivity. The Central Economic Work Conference proposed to promote industrial innovation with scientific and technological innovation, especially with subversive technology and cutting-edge technology to promote new industries, new models, new driving forces and develop new quality productivity. The important conclusion of "new quality productivity" is the innovation and development of Marxist productivity theory, which further enriches the connotation of Xi Jinping's economic thought. It has important theoretical significance as well as profound practical significance.

　　 The new quality productivity is the contemporary advanced productivity which is generated by the revolutionary breakthrough in technology, the innovative allocation of production factors, and the in-depth transformation and upgrading of industries. It takes the qualitative change of workers, means of labor, labor objects and their optimized combination as its basic connotation, and the improvement of total factor productivity as its core symbol.

　　 To speed up the cultivation of new quality productive forces, we should grasp three points. First, build a new workforce, including strategic talents who can create new quality productivity and applied talents who can master new quality means of production. Second, make good use of new production tools, especially master key core technologies, and enable the development of emerging industries. At the technical level, we should make up for shortcomings, build long boards, and attach importance to general technology. At the industrial level, we should consolidate strategic emerging industries, layout future industries in advance, and transform and upgrade traditional industries. The third is to shape production relations that adapt to new quality productivity. Through reform and opening up, we will work hard to break through the blockages that constrain the development of new quality productivity, so that all kinds of advanced and high-quality production factors can flow smoothly and be efficiently allocated to the development of new quality productivity.

　　 Specifically, there are six policy initiatives.

　　 First, unblock the virtuous circle of education, science and technology, and talents, promote the spirit of scientists and entrepreneurs, and create a good atmosphere to encourage bold innovation. Second, speed up the improvement of the new national system, give full play to the strategic guidance role of the government, make enterprises truly become the main body of innovation, and let talents, capital and other innovative elements gather in enterprises. The third is to support the development of strategic emerging industries and future industries, encourage enterprises to accelerate the transformation of digital intelligence, and realize the deep integration of the real economy and the digital economy. Fourth, accelerate the construction of a unified national market, continue to optimize the development environment for private enterprises, and truly give full play to the unique advantages of the rich application scenarios of the super large market and the amplification of innovation revenue. Fifth, improve the mechanism of factor participation in income distribution, stimulate the vitality of production factors such as labor, knowledge, technology, management, data and capital, and better reflect the orientation of knowledge, technology and human capital. Sixth, expand high-level opening up, constantly improve the business environment, strengthen intellectual property protection, form an open and innovative ecology with global competitiveness, and share China's development dividends with global enterprises and talents.

　　 Q: How can we further play the leading role of scientific and technological innovation and accelerate the construction of a modern industrial system?

　　 Answer: Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at the core, relevant departments and local governments have strengthened their awareness of hardship, adhered to the bottom line thinking, and effectively responded to the escalating containment and suppression in some countries. Many milestone achievements have emerged in the fields of science, technology and industry. The meeting clearly proposed that scientific and technological innovation should lead the construction of a modern industrial system. To understand and implement the spirit of the meeting, we should focus on the following three aspects.

　　 First, we need to improve the new national system and tackle key core technologies. The new national system we are talking about is a national system under the condition of socialist market economy. We should not only give play to the strategic guidance role of the government, but also give play to the innovative role of enterprises. We should speed up the gap in the basis of industrialization and deep accumulation, constantly strengthen the resilience of the supply chain of the industrial chain, and improve the security level of the modern industrial system.

　　 Second, we should vigorously promote new industrialization and enhance the core competitiveness of the industry. We should actively adapt to and lead a new round of scientific and technological revolution and industrial transformation, vigorously develop the digital economy, speed up the development of artificial intelligence, create a number of strategic emerging industries such as biological manufacturing, commercial aerospace, low altitude economy, open up new tracks for future industries such as quantum and brain science, and encourage the development of green and low-carbon industries. We should use advanced and applicable technologies such as digital intelligence technology and green technology to inject new momentum into traditional industries and accelerate transformation and upgrading.

　　 Third, we need to refine industrial demand and optimize the layout of the innovation system. In accordance with the immediate needs and long-term development needs of the industry, we need to condense and deploy a number of major national science and technology projects that have a bearing on the overall situation and long-term impact, constantly strengthen applied basic research and cutting-edge research, and further play the role of national strategic science and technology forces such as the national laboratory system. We should encourage the development of venture capital and equity investment, and support long-term capital and patient capital to invest more in scientific and technological innovation.

　　 In addition, the "new three types" of industries, such as lithium battery, photovoltaic and new energy vehicles, which have attracted much attention, have developed rapidly in recent years and are also highly competitive in the international market. We should strongly support enterprises to further expand domestic and international markets, promote the optimization of industrial technical standards, create a good competitive environment, and achieve the survival of the fittest in line with market rules.

　　 Promote the development and growth of private enterprises, Strengthen the implementation of policies

　　 Q: This year, the central government launched a series of policies and measures to promote the development and growth of private enterprises. How are they implemented and achieved? How to further boost the confidence of private enterprises?

　　 Answer: Private economy is an important force to promote Chinese style modernization. In July this year, the CPC Central Committee and the State Council issued their opinions on promoting the development and growth of private economy. Subsequently, relevant departments successively introduced a series of supporting policies and measures, forming a "1+N" policy system. At present, these policies and measures are being implemented quickly, and the private economy is showing a positive trend of development. The Central Economic Work Conference further deployed the development and expansion of the private economy, again emphasizing the "two unswervingly". Understand and implement the spirit of the meeting, improve relevant policies and measures, strengthen the implementation of policies, and strive to make private enterprises feel and reach.

　　 First, promote the development and growth of private economy. We will improve the socialist legal system with Chinese characteristics, safeguard the property rights of private enterprises and the rights and interests of entrepreneurs in accordance with the law, and remove institutional barriers that restrict private enterprises from participating in fair market competition. We will promote private enterprises to transform their development patterns, transform their growth drivers, strengthen industries, strengthen independent innovation, and achieve healthy and high-quality development of the private economy.

　　 The second is to implement a number of landmark measures in market access, factor acquisition, fair law enforcement, rights and interests protection, etc. Carry out special treatment of discrimination against private enterprises in the field of bidding and tendering, and eliminate discriminatory practices such as ownership scoring. Promote and improve the system and mechanism for private enterprises to participate in the construction of major projects, and solve the financing problems of private enterprises. Optimize the credit repair and service mechanism of private enterprises. Safeguard the legitimate rights and interests of private enterprises in the investigation and handling of enterprise related cases and cases in different places according to law.

　　 Third, stimulate the endogenous power and innovation vitality of private enterprises. Promote the establishment of public R&D platforms in key industries, support private enterprises to cooperate with scientific research institutions, colleges and universities to establish innovation platforms such as technology R&D centers, and take the path of specialized, special and new development. Increase the opening of application scenarios in high-end equipment, smart logistics, green low-carbon and other fields, and encourage private enterprises to participate in the development and construction of new scenarios. Further improve the innovation policy environment, and effectively realize the high quality and high price of innovative products of private enterprises and the profits of innovators.

　　 Actively and steadily defuse real estate risks, Accelerate the construction of a new model of real estate development

　　 Q: China's real estate market is still in the adjustment cycle. The central government has proposed to actively and steadily resolve real estate risks and accelerate the construction of a new model of real estate development. To promote the steady and healthy development of the real estate market, what will be the focus of the policy next year?

　　 Answer: At present, the situation and development trend of China's real estate market are highly concerned by all parties. The meeting made special arrangements for the real estate work in the next year and even in the future. To understand and implement the spirit of the meeting, we need to focus on three aspects:

　　 First, actively and steadily defuse real estate risks. Since this year, all relevant parties have conscientiously implemented the decisions and arrangements of the CPC Central Committee, adjusted and optimized the real estate regulation policies in a timely manner, and successively introduced a series of policy measures, such as "recognizing houses and not recognizing loans", "reducing the down payment ratio and interest rate", "supporting financial institutions to meet the reasonable financing needs of real estate enterprises", and achieved positive results. According to the latest data of the People's Bank of China, since November alone, five major banks, namely, industry, agriculture, China, construction and transportation, have provided more than 30 billion yuan of development loans to non-state-owned real estate enterprises, including more than 14 billion yuan in the past two weeks. In the next step, we should continue to pay attention to the trend of the real estate market, meet the reasonable financing needs of real estate enterprises of different ownership without discrimination, and do not draw loans, continue to lend, or hesitate to lend to normal operating real estate enterprises, so as to better support rigid and improved housing needs. We should strengthen the supervision of pre-sale funds to ensure the smooth completion of projects under construction. With the joint efforts of all parties, the policy goal of preventing risks and stabilizing the market is fully achievable.

　　 Second, we will accelerate the construction of affordable housing, the construction of public infrastructure for both temporary and temporary use, and the transformation of villages in cities. This is a major deployment made by the CPC Central Committee according to the new situation of real estate development. The "three major projects" are not only major livelihood projects to solve the people's urgent problems, but also help drive real estate related investment and consumption, and stabilize the macroeconomic market. At present, relevant work has been started. Next, we should pay close attention to improving various supporting policies, promote the implementation of a number of projects as soon as possible, form a physical workload, and see tangible economic and social benefits.

　　 Third, accelerate the construction of a new model of real estate development. The meeting put forward clear requirements on accelerating the construction of a new model of real estate development. This is a permanent solution to solve the real estate development problems and promote the steady and healthy development of the real estate market. In promoting the construction of the "three major projects", we should increase the construction and supply of affordable housing, accelerate the construction of a housing supply system that focuses on the government to provide basic security and the market to meet multi-level needs, meet the rigid housing needs of wage earners, and meet the diverse and improved housing needs of urban and rural residents. At the same time, it is necessary to improve the relevant basic systems in view of the prominent contradictions and problems faced by the high-quality development of real estate, so as to lay a good institutional foundation for building a new model of real estate development.

　　 At present, China's real estate market is in a transition period. Although it has encountered some difficulties, there is still a broad prospect and solid support for sustainable development. With the continuous implementation of the major decisions and arrangements of the CPC Central Committee and the effective implementation of various work, I believe that it will be able to effectively resolve risks, build a new model of real estate development, and promote the steady and healthy development of the real estate market.

　　 Q: What arrangements have been made to prevent and defuse risks, and how to prevent risks, especially systemic risks?

　　 Answer: This year's Central Economic Work Conference and the Central Financial Work Conference held not long ago stressed the need to continue to effectively prevent and resolve risks in key areas such as real estate, local debt, small and medium-sized financial institutions, and firmly hold the bottom line of no systemic risks. To understand and implement the spirit of the meeting, three principles need to be grasped:

　　 First, we should coordinate the relationship between risk resolution and stable development. Areas with high debt risk should develop while taking advantage of debt, find new development paths in the process of debt resolution, and make greater efforts to stimulate private investment and expand the use of foreign capital. Areas with low debt risk should be able to develop quickly and quickly with high quality, especially in large economic provinces, so as to make greater contributions to stabilizing the national economy.

　　 Second, we should comprehensively strengthen supervision and firmly hold the bottom line of avoiding systematic risks. We should tighten financial supervision, strengthen financial and accounting supervision, tighten financial discipline, and secure the bottom line of "three guarantees" at the grass-roots level. All financial activities should be regulated according to law. Local governments should be responsible and conscientious, and all parties should work together for joint management and close cooperation. They should act in a timely manner to crack down on all kinds of illegal and criminal acts and illegal financial activities.

　　 Third, we should adhere to the concept of system and find the right way. We should be good at revitalizing existing assets and curbing incremental risks. We will address risks in real estate, local debt, and small and medium-sized financial institutions as a whole.

　　 On the whole, although there are still many potential risks in some fields, under the strong leadership of the Party Central Committee with Comrade Xi Jinping at the core, as long as we adhere to the correct principles and working methods, risks are still preventable and controllable, and we will certainly be able to hold the bottom line that systematic risks do not occur.