Economic-Themed Press Conference During Two Sessions-Full Transcript & Highlights
What’s been said during this two-hour-long press release
Hello, my readers! This afternoon, a press conference on economic themes was held at the Third Session of the 14th National People's Congress. As an important component of the Two Sessions, this press conference provides more details and in-depth info than the government work report. The panel featured several key ministerial officials, making it particularly noteworthy. They are:
Zheng Shanjie, Director of the National Development and Reform Commission;
Lan Fo'an, Minister of Finance;
Wang Wentao, Minister of Commerce;
Pan Gongsheng, Governor of the People's Bank of China;
Wu Qing, Chairman of the China Securities Regulatory Commission,
This is a two-hour press conference, so I've highlighted the key points that stood out to me. Feel free to share if you find this useful, and don't forget to click the like button! Also, feel free to email me if you have any questions.
Boost Tech innovations:
National Venture Capital Guidance Fund
NDRC director Zheng Shanjie said the state is promoting the establishment of a National Venture Capital Guidance Fund, which will attract and mobilize nearly 1 trillion yuan from local and social capital. It will primarily guide financial capital to invest early, small, long-term, and in hard technologies, mainly focusing on frontier areas such as artificial intelligence, quantum technology, hydrogen energy storage, and other cutting-edge fields. The fund has a lifespan of 20 years, which is longer than typical equity investment funds.
launching a "Science and Technology Innovation Board"（STAR） in the bond market. Supporting three types of entities—financial institutions, technology companies, and private equity investment institutions—to issue technology innovation bonds.
Optimizes tech innovation re-lending policies by: expanding funds from 500 billion to 800-1000 billion yuan, lowering interest rates, broadening eligibility, maintaining fiscal subsidies, and streamlining processes—all to reduce financing costs and improve business access.
Consumption:
Doubling down on national subsidies of trade-in programs. the category range was expanded from 8+n to 12+n categories; smartphones, tablets, and smartwatches were also included. In terms of numbers, the funds for trade-in programs have been doubled to 300 billion yuan.
The plan also includes interest subsidies for personal consumption loans in key sectors, along with targeted interest subsidies for business loans in industries essential to daily life, including food service, hospitality, healthcare, elderly care, childcare, and household services.
Additionally, they foreshowed a "Special Action Plan to Stimulate Consumption"《提振消费专项行动方案》jointly developed by multiple departments, hope there are more direct subsidy policies. This is worth paying attention to.
Market Opening:
China will expand the opening of telecommunications, healthcare, and education sectors. There will also be a measured approach to opening up the internet and cultural fields. While the exact Internet implications remain unclear,（Pan Helin, a member of the Information and Communication Economics Expert Committee of the Ministry of Industry and Information Technology, analyzed for Yicai reporters that strongly encouraging foreign investment and promoting orderly opening of the Internet sector is aimed at enhancing cross-border economic and trade exchanges. This will also help China's manufacturing and service industries find new target markets and create a favorable environment for international exchanges that support China's technological development. The emphasis on "orderly opening" reflects considerations about internet security, ensuring that internet liberalization proceeds in a managed, step-by-step manner.）
My personal understanding is that the cultural opening likely means increased international performances in China, similar to Kanye West's live performance last year.
Facing Tariffs:
Seems different departments have built their policy reserve facing uncertainties, leaving some maneuver space for potential tariffs
Minister of Commerce Wang Wentao
Regarding policy strengthening, we are combining solutions for current prominent issues with promoting high-quality trade development, rapidly researching and reserving new support policies, which will be introduced in a timely manner as needed.
政策加力方面，把解决当前突出问题和推动贸易高质量发展结合起来，抓紧研究储备新的支持政策，将根据需要及时出台。
Finance Minister Lan Fo'an also specifically mentioned
The central government's finance department has reserved sufficient backup tools and policy space to address potential internal and external uncertainties.
为应对内外部可能出现的不确定因素，中央财政预留了充足的储备工具和政策空间。
PBoC Governor Pan Gongsheng
This year, we will reduce the reserve requirement ratio and interest rates as appropriate, based on domestic and international economic and financial situations and financial market operations. Currently, the average reserve requirement ratio for financial institutions is 6.6%, which still has room to decrease further. 今年将根据国内外经济金融形势和金融市场运行情况，择机降准降息。目前金融机构存款准备金率平均为6.6%，还有下行空间，
There is also room for downward adjustment in the interest rates of structural monetary policy tool funds provided by the central bank to commercial banks.
中央银行向商业银行提供的结构性货币政策工具资金利率也有下行空间。
Stock market:
My emphasis would be on encouraging listed companies to strengthen investor returns through initiatives like multiple dividend distributions per year and pre-Spring Festival dividends.
In 2024, market-wide dividends reached 2.4 trillion yuan, a record high. Over 300 listed companies distributed dividends in the two months before this year's Spring Festival, totaling more than 340 billion yuan—another record. Last year, listed companies also conducted share buybacks worth nearly 150 billion yuan, an all-time high. Overall, dividends and buybacks now far exceed the total scale of IPOs, refinancing, and reduced holdings. The CSI 300 index dividend yield has reached 3.4%, indicating a market ecosystem with increasingly balanced investment and financing is rapidly taking shape.
Below is the full transcript I translated:
https://www.news.cn/politics/20250306/f9f82a67b3884e2e9cb2d987198ddd1c/c.html
Reporter from Market News International:
My question is for Director Zheng Shanjie and the National Development and Reform Commission. The government work report has clearly outlined China's economic development target for 2025, while some international institutions forecast growth of around 4.6%-4.8%. What is your view on China's economic situation? Can this year's target of around 5% be achieved? How will the National Development and Reform Commission promote related work?
Zheng Shanjie:
Thank you for your question, and I'd like to take this opportunity to thank all media friends for your concern and support for development and reform work.
This year's expected target of around 5% was prudently proposed by the Central Committee of the Communist Party and the State Council after a comprehensive assessment, scientific demonstration, and systematic balancing. At the practical level, we have made thorough and solid preparations to achieve this goal. Economic development is a continuous process. Let's first look at China's economy from last year, which relates to its foundation, current situation, and development trends.
Over the past year, the development journey was extraordinary. China's economy demonstrated strong resilience and vitality, experiencing high growth at the beginning, a slowdown in the middle, and recovery toward the end, delivering a report card that is precious, substantial, and encouraging. In particular, the Central Committee made decisive decisions based on the circumstances, deploying a package of incremental policies that played a decisive role in successfully completing the main economic and social development goals for the year. This report card has four characteristics:
First, large increment. China's annual GDP approached 135 trillion yuan, maintaining a contribution rate of around 30% to world economic growth. To put it vividly, the annual increment is equivalent to Shanghai's total economic output domestically, or comparable to the economic output of a country ranked around 20th globally.
Second, high quality. New growth drivers are developing rapidly. I'd like to illustrate with a set of data: the added value of "three new" economies—new industries, new business forms, and new business models—further increased as a proportion of GDP, exceeding 18%. The added value of high-tech manufacturing increased by 8.9%, 3.1 percentage points faster than the growth of industrial added value above designated size. New energy vehicle production exceeded 13 million units, accounting for over 60% of global production. Integrated circuit production grew rapidly, with exports exceeding 1.1 trillion yuan, hitting a historical high. Total social research and development expenditure exceeded 3.6 trillion yuan, increasing by 8.3%. Nearly 500,000 domestic enterprises own valid invention patents, up by 16.1%. These figures reflect the quality of economic development. Meanwhile, the transformation and upgrading of traditional industries is significantly accelerating. It's worth noting that the vitality and momentum of the private economy continue to strengthen. Exports by private enterprises accounted for 64.7% of total exports, an increase of 1.4 percentage points. Private investment in manufacturing and infrastructure increased by 10.8% and 5.8% respectively, significantly higher than overall investment growth.
Third, solid foundation. Grain production exceeded 1.4 trillion jin (700 billion kg), reaching a new record high, ensuring that Chinese people's rice bowls remain firmly in their own hands. Energy security has been strengthened. The reserve system for important resources has become more robust. The level of basic public services continues to improve.
Fourth, positive momentum. Core technologies in strategic emerging industries and future industries have achieved new breakthroughs. Industries such as integrated circuits, artificial intelligence, aerospace, biomedicine, marine, and new materials are developing rapidly. New growth drivers are forming more quickly, and the long-term positive trend of the economy is becoming more evident.
From a macro perspective, this report card implements the Central Committee's requirements for "promoting effective qualitative improvement and reasonable quantitative growth of the economy" and "coordinating high-quality development with high-level security," laying a solid foundation for development this year.
We also see that external uncertainties are increasing, while facing domestic issues such as insufficient demand and operational difficulties for some industries and enterprises. These challenges are problems encountered in the process of progress and development, and they can be overcome and resolved. In a comprehensive analysis, our system has advantages, our market has potential, our enterprises have vitality, and more importantly, we have the courage to face risks and challenges and the confidence to solve problems. There is a foundation, support, and guarantee for achieving this year's target of around 5%. We are full of confidence in this, as the saying goes, "Though each pass is difficult, we overcome them all. The long road ahead is also brilliant."
Of course, this process still requires arduous efforts. As the comprehensive department for macroeconomic regulation, we have proposed measures in 10 areas in the "Plan Report" in accordance with the Central Committee's decisions and the specific arrangements in the government work report. Here, I would like to briefly introduce four aspects that are of general concern, which can be summarized as four "strengthening" efforts.
First, better combining consumption promotion with people's wellbeing, strengthening efforts to boost resident consumption. For example, support funds for trade-ins of consumer goods have increased from 150 billion yuan last year to 300 billion yuan, with both the amount increased and the scope expanded. Another example is adapting to multi-level and diversified consumption needs by innovating and enriching consumption scenarios. Recently, multiple departments jointly formulated the "Special Action Plan for Boosting Consumption," which will be announced and implemented soon.
Second, better combining the filling of shortcomings with increasing momentum, strengthening efforts to expand effective investment. In terms of government investment, national-level funds for investment and construction this year—including ultra-long-term special treasury bonds, local government special bonds, and central budget investment—will reach over 5 trillion yuan. We will focus more on improving investment efficiency, doing good and practical things that build foundations and benefit the long term. Regarding private investment, last year we introduced private capital to fully participate in nuclear power construction and recommended over 8,000 projects to private capital, achieving good results. This year, we will support private enterprises' investment layouts in emerging and future industries, and will launch a number of attractive major projects in fields such as railways, nuclear power, water conservancy, and major scientific and technological infrastructure.
Third, better combining the cultivation of new drivers with upgrading traditional drivers, strengthening efforts to build a modern industrial system. On one hand, we will cultivate and strengthen emerging and future industries. Recently, we will establish a national venture capital guidance fund with the purpose of optimizing and strengthening innovative enterprises. On the other hand, we will transform and upgrade traditional industries. Recently, the State Council executive meeting studied policy measures to resolve structural contradictions in key industries. We will issue specific plans by industry, promote the exit of backward and inefficient capacity, expand mid-to-high-end capacity supply, allowing the supply side to better adapt to changes in market demand.
Fourth, better combining breakthroughs in specific areas with overall improvement, strengthening efforts to deepen reform and opening up. For example, we will deeply implement guidelines for building a unified national market, promote high-level opening to the outside world, and further smooth domestic and international dual circulation. We will comprehensively and deeply carry out actions to effectively reduce social logistics costs, lowering unreasonable costs in various fields and links. We will promulgate and implement the Private Economy Promotion Law. At the same time, we will accelerate efforts to solve problems such as arrears in payments.
In accordance with the decisions and deployments of the Central Committee and the State Council, the National Development and Reform Commission will collaborate with relevant departments, strengthen comprehensive coordination and balance, enhance policy coordination in finance, monetary, industry, investment, employment, consumption, regional and other fields, increase the consistency of macroeconomic policy orientation, improve the combined effect of macroeconomic policies, and strive to complete the development goals and tasks for the entire year.
CMG Reporter:
My question is for Minister Lan. The government work report has deployed a more active fiscal policy. How will this year's fiscal policy demonstrate greater proactiveness?
Lan Fo'an:
I would also like to take this opportunity to thank our media friends for their concern and support for fiscal work over the past year. "More active" is a phrase that appears for the first time in many years, and everyone is paying close attention to it.
Macroeconomic regulation must be compatible with economic scenarios, and fiscal policy needs to be adapted to changing circumstances. Implementing a more active fiscal policy is a major strategic decision made by the Central Committee from a strategic and holistic perspective. It fully considers the need to achieve annual targets while enhancing medium and long-term development momentum, reflecting the targeted and forward-looking nature of macroeconomic regulation.
You mentioned "more active," which can be understood as sustained effort with greater effectiveness. On one hand, we're focusing on implementing existing policies effectively, ensuring that the package of policies introduced in the fourth quarter of last year achieves results and continues to release policy effects this year. On the other hand, we're developing practical new incremental policies, making full use of policy space, focusing on improving people's livelihoods, stimulating consumption, and increasing future momentum. We'll timely research and introduce new incremental policies, ensuring greater strength and stronger targeting, so that all sectors feel more benefits. This year's more active fiscal policy is specifically reflected in five aspects:
First, more forceful deficit arrangements. This year's deficit ratio is set at 4%, with a deficit scale reaching 5.66 trillion yuan, an increase of 1.6 trillion yuan over last year. Both the deficit level and scale are the highest in recent years, further increasing counter-cyclical adjustment.
Second, more forceful spending intensity. This year's national general public budget expenditure is 29.7 trillion yuan, an increase of 4.4% over last year. This further expansion of fiscal expenditure will strongly promote sustainable and healthy economic and social development.
Third, more forceful government bond issuance. This year will see 4.4 trillion yuan in new local government special bonds. Ultra-long-term special treasury bonds totaling 1.3 trillion yuan will be issued to support the construction of "two major" projects and strengthen the implementation of "two new" policies. The first batch of special treasury bonds totaling 500 billion yuan will be issued to support large state-owned commercial banks in supplementing their core tier-one capital. Including treasury bonds to cover the deficit, this year's new government bond issuance will reach 11.86 trillion yuan, an increase of 2.9 trillion yuan over last year.
Fourth, more forceful transfer payments. This year, central government transfer payments to local governments are set at 10.34 trillion yuan, an increase of 8.4% on a comparable basis. The focus is on increasing general transfer payments, enhancing local financial autonomy, and effectively improving local fiscal security capabilities. At the same time, incentive funds for promoting high-quality development will be increased to guide localities in improving development quality and enhancing endogenous motivation.
Fifth, more forceful support for key areas. This year, national education expenditure and social security and employment expenditure will both approach 4.5 trillion yuan, increasing by 6.1% and 5.9% respectively. Science and technology expenditure will exceed 1.2 trillion yuan, increasing by 8.3%. Expenditures in areas such as health and housing security will maintain relatively high growth rates.
At the same time, we will continue to strengthen scientific fiscal management, deepen fiscal and tax system reform, and resolutely implement the requirement for party and government organs to maintain frugality, ensuring money is spent where it matters most and with the best results.
I would also like to add that to address possible internal and external uncertainties, the central government has reserved sufficient backup tools and policy space.
The Paper Reporter:
A question for Minister Wang Wentao: Since the beginning of this year, China's consumer market has continued to expand with numerous highlights, especially how the trade-in policy for consumer goods has triggered a new wave of consumption for phones, tablets, and other devices. Service consumption has been particularly active, becoming an important force driving consumer market growth. What additional measures will the Ministry of Commerce take to expand consumption going forward?
Wang Wentao:
Let me first discuss consumption last year. In terms of scale, total retail sales of consumer goods reached 48.3 trillion yuan in 2024, a year-on-year increase of 3.5%, with consumption remaining the primary driver of economic growth. Meanwhile, service consumption maintained good growth momentum, with service retail sales increasing by 6.2%, a rate far higher than overall retail sales, becoming a new growth point for consumption. Regarding highlights and hot spots, "trade-in" became a household "high-frequency word," representing not just an economic policy but also a measure benefiting the people. Trade-ins generated new development momentum, driving consumption of automobiles (especially new energy vehicles), home appliances, and home improvements worth over 1.3 trillion yuan, promoting industrial transformation and upgrading, and developing new quality productive forces. Trade-ins improved quality of life, delivering a "better life" with smarter, more environmentally friendly, and safer consumer products entering thousands of households. As you may have noticed, this year's Spring Festival consumer market was vibrant with strong sales, particularly in service consumption. The Asian Winter Games sparked enthusiasm for ice and snow activities, films like "Nezha 2" drove cinema attendance, and "Intangible Cultural Heritage Spring Festival" kicked off a successful start for inbound tourism, making the "Chinese New Year" a global celebration and further consolidating the positive trend of consumption recovery.
At the same time, we must recognize that domestic demand insufficiency and the incomplete release of consumption potential remain prominent issues. Looking closer, the main problem with goods consumption is weak consumption capacity and willingness, with effective demand being constrained—the demand side is the primary contradiction. For service consumption, the main contradiction is insufficient high-quality supply. The government work report made arrangements for boosting consumption, emphasizing the need to revitalize economic circulation through consumption and lead industrial upgrading through consumption upgrading. The Ministry of Commerce will work with relevant departments to earnestly implement these plans, combining consumption promotion with improving people's livelihoods, coordinating goods and service consumption, introducing more practical and effective measures to release consumption growth potential. Here, I'd like to highlight two key initiatives:
The first is the trade-in program, emphasizing "strengthened efforts, expanded scope, and upgraded benefits for the people." Building on last year's policy and following central directives, we've focused on consumers' actual needs and listened to their feedback. We've expanded the range of products eligible for "new purchase" subsidies—home appliances increased from "8+N" categories to "12+N" categories, and we've added "new purchase subsidies" for mobile phones, tablets, and smartwatches/bands. As of March 5, nationwide applications for 2025 vehicle scrappage and renewal subsidies exceeded 310,000, and applications for vehicle replacement subsidies exceeded 700,000, totaling over 1 million. More than 9.4 million consumers purchased over 12 million trade-in products across 12 major home appliance categories, and over 34 million consumers applied for new purchase subsidies for more than 42 million digital products, including mobile phones. We've also upgraded services and improved efficiency, making the "exchange" process more convenient and reassuring, allowing people to better enjoy policy benefits.
The second focuses on service consumption, with an emphasis on "opening up externally and internally." Last year, China's per capita GDP exceeded $13,000. International experience shows that when per capita GDP exceeds $10,000, service consumption demand accelerates. A direct observation is that previously people mainly went shopping to buy things, but now they go where things look good, are fun, or have good food—placing greater emphasis on service consumption. Compared to the rapidly growing and increasingly diverse demand, new business models and scenarios integrating commerce, tourism, culture, sports, and health still need continuous innovation and optimization. Opening up in education, healthcare, and wellness needs deepening, and there remains a supply gap in services for "the elderly and children." Moving forward, the Ministry of Commerce will focus on "opening up externally and internally," ensuring basic livelihood service consumption while increasing high-quality service supply to meet service consumption demands.
Regarding external opening up, we will promote expanded pilot programs in telecommunications, healthcare, education, and other fields, promote orderly opening in internet and cultural sectors, advance comprehensive pilot demonstrations for service industry expansion, enhance our leading role in national service industry opening, introduce more quality services, and improve supply quality. We will optimize visa policies for foreigners coming to China, enhance convenience levels for entry, accommodation, payment, etc., and cultivate internationally-oriented education, medical, exhibition, and other markets.
Regarding internal opening up, last year the State Council issued the "Opinions on Promoting High-Quality Development of Service Consumption," a comprehensive policy document that serves as the overarching "1." Working with relevant departments, we've issued 18 policy documents around service consumption areas such as elderly care, childcare, cultural tourism, and the ice and snow economy—what we colloquially call the "N." For example, the recently issued action plan to increase "silver-age tourism" trains has been welcomed by elderly travelers and has repeatedly topped trending lists. Going forward, we will continue to focus on key areas and livelihood concerns, introducing support policies and special measures, starting with broadening access, reducing restrictions, and optimizing supervision to expand diverse service supplies in health, elderly care, childcare, housekeeping, and other areas. At the same time, we will implement actions to improve service consumption quality and benefit the people, organizing a series of activities to promote service consumption, such as "Service Consumption Season," "Chinese Food Festival," "Taste Food with Sports Events," and the recently popular "Taste Food with Movies." We encourage localities to promote integrated business development based on local characteristics and segmented consumer needs, innovate service consumption scenarios, and better meet personalized, diverse, and quality consumption demands.
Xinhua News Agency Reporter:
The monetary policy in 2024 showed notable results. Yesterday's government work report clarified the macroeconomic policy direction for 2025, proposing the implementation of a moderately loose monetary policy. What are the central bank's considerations in this regard?
Pan Gongsheng:
Thank you for your question. Greetings to all our friends in the media. In 2024, the People's Bank of China implemented several significant monetary policy adjustments, especially the package of incremental financial policies introduced in September, which effectively boosted market confidence and promoted steady economic growth.
In terms of quantity, we reduced the reserve requirement ratio twice and lowered policy interest rates twice, while guiding the Loan Prime Rate (LPR) downward. Structurally, we created re-lending facilities for technological innovation and technical transformation, re-lending for affordable housing, and two monetary policy tools to support the capital market. We optimized real estate financial policies, lowered mortgage rates and down payment ratios, and promoted reductions in existing mortgage rates. Regarding exchange rates, we implemented comprehensive measures to maintain stable expectations and keep the RMB exchange rate basically stable amid complex circumstances. For monetary policy transmission, we improved the monetary policy framework, innovatively conducted open market operations including government bond trading, promoted reform of the quarterly accounting method for financial industry added value, and strengthened supervision of interest rate policy implementation.
Overall, the counter-cyclical adjustment effect of monetary policy since last year has been quite evident, and its policy effects will continue to manifest this year. By the end of 2024, the year-on-year growth rates of total social financing, broad money M2, and RMB loans were all between 7% and 8%, about 3 percentage points higher than nominal economic growth, while financing costs were at historical lows.
The Central Economic Work Conference and the Premier's government work report yesterday clearly outlined the expected goals, macroeconomic policies, and key tasks for economic work in 2025. The People's Bank of China will implement the central government's decisions and deployments, effectively implementing a moderately loose monetary policy, balancing the relationships between short-term and long-term considerations, economic growth and risk prevention, internal and external equilibrium, and supporting the real economy while maintaining the health of the banking system.
First, in terms of quantity, the monetary policy orientation is a description of a state. The Federal Reserve cut interest rates three times last year by a total of 100 basis points, but its policy interest rate remains high, and its monetary policy remains restrictive. The People's Bank of China has reduced reserve requirements and interest rates multiple times over consecutive years, making China's monetary policy supportive and relatively loose in quantity. This year, based on domestic and international economic and financial situations and financial market operations, we will cut reserve requirements and interest rates at appropriate times, as the Premier clearly stated in yesterday's government work report. Currently, financial institutions' average reserve requirement ratio is 6.6%, with room for further reduction, and the interest rates on structural monetary policy tool funds provided by the central bank to commercial banks also have room to decrease. At the same time, we will comprehensively utilize monetary policy tools such as open market operations, medium-term lending facilities, re-lending and rediscounting, and policy interest rates to maintain ample market liquidity, reduce banks' liability costs, continuously push down comprehensive social financing costs, and ensure that growth in total social financing and money supply matches economic growth and expected price level targets.
Second, structurally, we will increase financial support for major strategies, key areas, and weak links. We will further expand the scale of re-lending for technological innovation and technical transformation, broaden policy support coverage, and scientifically use various structural monetary policy tools to guide financial institutions in strengthening support for technology finance, green finance, inclusive small and micro businesses, and elderly care finance. We will research and create new structural monetary policy tools, focusing on supporting investment and financing in technological innovation, promoting consumption, and stabilizing foreign trade. We will make good use of the two monetary policy tools supporting the capital market, exploring normalized institutional arrangements with the Securities Regulatory Commission to support stable capital market development.
Third, in terms of policy transmission, we will further improve the interest rate control framework, continuously strengthen the implementation and supervision of interest rate policies, enhance regulation of unreasonable market behaviors that easily reduce monetary policy transmission, and promote the implementation of measures such as bank capital replenishment. We will smooth monetary policy transmission mechanisms, guide banks in scientifically assessing risks, optimizing credit structure, and improving resource allocation efficiency. Director Zheng from the NDRC just mentioned the orientation of industrial policy; financial policy will also strengthen coordination with industrial policy, with both support and control in policy direction, promoting dynamic balance of industrial supply and demand, and supporting economic restructuring, transformation and upgrading, and the conversion of old and new growth drivers. We will emphasize coordination with fiscal policy, supporting the more effective implementation of active fiscal policy. At the same time, we will better leverage the synergistic effects of monetary policy with fiscal interest subsidies, risk compensation, and other measures.
Fourth, regarding exchange rates, our policy and stance remain consistent. We will adhere to the decisive role of the market in exchange rate formation and maintain exchange rate flexibility. At the same time, we will strengthen expectation guidance, resolutely prevent exchange rate overshooting risks, and maintain the basic stability of the RMB exchange rate at a reasonable and balanced level.
Shanghai Securities News Reporter:
My question is for Chairman Wu Qing. In April last year, the State Council issued the new "Nine National Measures," and the China Securities Regulatory Commission (CSRC) and relevant parties issued several supporting policy documents. Please introduce the implementation of these policies. The government work report proposes to make greater efforts to promote the healthy development of the stock market. What are the CSRC's next steps?
Wu Qing:
I'd also like to take this opportunity to thank everyone for your long-term concern and support for the capital market! Shortly after last year's Two Sessions, the State Council issued the "Several Opinions on Strengthening Supervision, Preventing Risks, and Promoting High-Quality Development of the Capital Market," also known as the new "Nine National Measures." Over the past year, under the coordinated guidance of the Central Financial Office, we have worked with relevant parties to promptly implement the new "Nine National Measures," formulating and revising more than 50 rules and regulations, forming a "1+N" policy system that systematically reshapes basic institutions and regulatory logic, promoting positive and profound changes in the capital market.
First, regarding strengthened supervision and investor protection, we have adhered to strict supervision and management, further improving regulatory systems and mechanisms across the entire chain and at all stages including issuance and listing, information disclosure, corporate governance, mergers and acquisitions, trading, and delisting, further enhancing regulatory effectiveness. We have focused on market concerns, especially severe violations that investors deeply detest, such as financial fraud, fraudulent issuance, market manipulation, and insider trading, investigating and punishing them quickly according to law. The General Office of the State Council forwarded opinions on comprehensive prevention and punishment of financial fraud in the capital market. Together with relevant parties, we launched a special campaign against financial fraud by listed companies and increased enforcement of major typical cases. In 2024, we handled 739 cases of various types, with fines and confiscations totaling 15.3 billion yuan, more than double the amount from the previous year. Beyond administrative penalties, we actively pursued criminal liability for suspected crimes, transferring 178 cases and leads to public security organs, a 51% year-on-year increase, and further pursuing criminal liability for those responsible in securities violation cases such as Kangde Xin and *ST Xinyi according to law. At the same time, we emphasized legal protection of small and medium investors' legitimate rights and interests, promoting the implementation of the first two cases under the new Securities Law where relevant intermediaries for Amethystum Storage Technology Co.,Ltd. and Zeda Yisheng made commitments, steadily advancing two special representative litigation cases for Jin Tong Ling Technology and Meishang Ecology, making new progress in investor protection work.
Second, regarding risk prevention and confidence building, facing complex and severe market conditions last year, we worked with relevant parties to improve market stabilization mechanisms, implementing a series of "combination punches." We improved algorithmic trading regulatory systems, comprehensively suspended securities lending according to law, optimized northbound information disclosure mechanisms, and severely punished illegal reductions in shareholdings, including "technical divorce" reductions, circumvention reductions, and "lightning cash-outs." At the same time, we actively promoted more incremental funds entering the market. Public fund registration and issuance significantly accelerated, with equity ETF scale exceeding 3 trillion yuan. Public funds' holdings of A-share circulating market value increased from 5.1 trillion yuan at the beginning of 2024 to the current 6 trillion yuan, a 17.4% increase. We worked with the People's Bank of China to quickly launch monetary policy tools supporting the capital market and collaborated with relevant parties to issue guidance and implementation plans for introducing medium and long-term funds into the market. With joint efforts from all parties, investor expectations and market confidence have improved significantly.
Third, regarding reform implementation and promotion of high-quality development, since last year, focusing on serving technological innovation and new quality productive forces development, we have issued measures including the "Sixteen Technology Measures," "Eight Science and Technology Innovation Board Measures," "Six M&A Measures," and implementation opinions on the capital market doing a good job on the "Five Major Financial Articles." At the same time, we made improving listed companies' investment value a key focus, encouraging listed companies to strengthen investor returns through active implementation of multiple dividends per year and dividends before the Spring Festival. In 2024, market-wide dividends reached 2.4 trillion yuan, a historical high. Over 300 listed companies implemented dividends in the two months before this year's Spring Festival, totaling over 340 billion yuan, setting a historical record. Last year, listed companies also implemented share buybacks of nearly 150 billion yuan, another historical high. By calculation, market dividends and buybacks now far exceed the total scale of IPOs, refinancing, and reduced shareholdings. The CSI 300 Index dividend yield has reached 3.4%, and a market ecology with more coordinated investment and financing is rapidly forming.
Both the Central Economic Work Conference and the recent Central Political Bureau meeting clearly emphasized stabilizing the real estate and stock markets. The government work report also, for the first time, included stabilizing these markets in the overall requirements for economic and social development. We will resolutely implement the decisions and deployments of the CPC Central Committee and the State Council, continuously promote the effective implementation of the new "Nine National Measures" and the "1+N" policy system, accelerate a new round of capital market reform and opening up with the deepening of comprehensive investment and financing reform as the driving force, and continually strengthen the foundation for healthy stock market development. Going forward:
First, we will further enhance the inclusiveness of the multi-level market system. We will deepen reforms of the Science and Technology Innovation Board, the Growth Enterprise Market, and the Beijing Stock Exchange, further optimizing differentiated arrangements in issuance and listing, information disclosure, and market tiers, promoting the concentration of market resources in new industries, new business forms, and new technology fields, while supporting innovative transformation and green development.
Second, we will further enhance the synergy of investment and financing development. We will improve the coordinated development mechanism between primary and secondary markets and counter-cyclical adjustment mechanisms, further improve listed company governance, and study and introduce more substantive measures to protect investors' legitimate rights and interests. We will promote the formation of an effective checks and balances mechanism between small and medium investors and key minority stakeholders such as major shareholders and actual controllers of listed companies, encouraging listed companies to enhance their awareness and ability to reward investors. At the same time, we will systematically address bottlenecks for social security, insurance, wealth management, and other medium and long-term funds entering the market, continuously introducing fresh capital. We will enhance strategic force reserves through multiple channels and improve effective market stabilization practices and working mechanisms.
Third, we will further enhance the effectiveness of regulatory enforcement. On one hand, we will "strictly punish according to law," promoting the issuance of judicial interpretations on breach of trust crimes and regulations on listed company supervision, accelerating the revision of regulations on securities company supervision, further deepening inter-ministerial and central-local collaboration, and implementing effective joint punishment for illegal behaviors according to law. On the other hand, we will "strictly prevent based on responsibility," establishing a long-term mechanism to prevent financial fraud, improving the "whistleblower" system, further solidifying the "gatekeeper" responsibility of intermediary institutions, and further strengthening technology-empowered supervision to enhance regulatory capabilities and strengthen source governance.
Fourth, we will further enhance the adaptability of market basic systems. Adhering to respect for principles and rules, we will optimize market pricing mechanisms, evaluate and improve trading and settlement systems, creating a fairer, more efficient, more attractive, and more predictable institutional environment for market participants. We will steadily expand high-level institutional opening-up, further improve the filing system for overseas listings, steadily expand cross-border interconnection, and better promote reform and development through opening up.
Guangming Daily Reporter:
My question is for Minister Lan. After the 6 trillion yuan debt replacement policy was introduced last year, it received much attention both domestically and internationally, with positive evaluations. Could you discuss the implementation effects of this policy and what considerations you have for the next steps?
Lan Fo'an:
The issue you're concerned about is also a key focus of our current work. Following the arrangements of the CPC Central Committee and with the approval of the Standing Committee of the National People's Congress, in the fourth quarter of last year, we increased local government debt limits by 6 trillion yuan in one go, distributing 2 trillion yuan each year over three years, to replace existing hidden debts and support local governments in resolving debt risks. This policy, through overall design and mechanism reconstruction, actively resolves debt risks while supporting local governments in freeing up more financial resources, building momentum for high-quality development. Overall, we've accomplished at least three major achievements with this single policy.
First, the debt pressure has been greatly reduced, and local government debt risks have been effectively mitigated. After the replacement policy was introduced, local governments arranged and implemented it quickly. One aspect is making hidden debt visible, making debt management more standardized and transparent. As of March 5 this year, localities have issued 2.96 trillion yuan in replacement bonds. Another aspect is lowering interest rates on high-interest debt. For the 2 trillion yuan in replacement bonds issued last year, interest rates decreased by an average of more than 2.5 percentage points, with some regions seeing even more significant reductions. It's estimated that interest payments on this portion of replacement bonds will decrease by more than 200 billion yuan over five years, greatly reducing local financial pressure and interest expenditures. We've also prioritized based on urgency, focusing first on hidden debts with imminent maturity dates and more prominent risks, firmly maintaining the safety defense line.
Second, fiscal space has been released, and economic development momentum has significantly strengthened. Despite considerable pressure on local government fiscal balance, by implementing the replacement policy: First, we've cleared economic circulation bottlenecks, with localities smoothing capital chains, guiding social capital and financial resources, and providing strong support to business entities such as technology companies and small and micro enterprises. Second, we've better secured key livelihood needs. Local governments have utilized debt resolution and other support policies to free up more funds, ensuring the "three guarantees" baseline at the grassroots level, with better protection for compulsory education, basic pension, basic medical care, minimum living guarantees, and preferential treatment for special groups. Third, we've supported key aspects of high-quality development. This year, local governments have arranged more funds for priority expenditures such as scientific and technological innovation and consumption promotion, with growth rates higher than last year.
Third, important steps have been taken in the reform and transformation of financing platforms, and the financial environment has continuously improved. Debt replacement has effectively driven platform exits. Since the fourth quarter of last year, 4,680 platforms have been reduced following the implementation of the replacement policy, accounting for more than two-thirds of the total reduction for the entire year. At the same time, it has helped optimize the asset quality of banks and other financial institutions, enhancing their willingness to extend credit and better serve the development of the real economy.
As you mentioned, the implementation of the replacement policy and the deepening of debt resolution work have been widely welcomed by local governments, and major rating agencies, international organizations, and expert scholars have also given positive evaluations. Practice has proven that the decisions and arrangements of the CPC Central Committee are absolutely correct.
The replacement policy has achieved a good start, and its effectiveness continues to be released. We will persist in resolving debt through development and developing amid debt resolution, striving for greater results. For the next steps, we will focus on three areas:
First, accelerating the implementation of the debt replacement policy. We will guide localities to issue and use this year's 2 trillion yuan replacement bond quota as early as possible, precisely replace hidden debts, and implement full-process, full-chain supervision of replacement funds to achieve early results.
Second, continuously promoting the reform and transformation of financing platforms. We will strip away the government financing function from platforms, promote market-oriented transformation based on the actual situation of enterprises, strictly prevent state-owned enterprises and institutions from putting on "new disguises," and cut off the "tentacles" of borrowing through alternative channels.
Third, resolutely curbing new hidden debts. We will further improve the monitoring system, making the prevention of illegal borrowing a focus of financial supervision, treating the prohibition of new hidden debts as an iron discipline, and resolutely preventing the addition of new debts after clearing old ones.
People's Daily Reporter:
My question is for Director Zheng Shanjie. Since last year, "new quality productive forces" has become a high-frequency term in economic work. AI large models, humanoid robots, domestically created original drugs, and other innovations have continuously emerged, with applications flourishing domestically and creating significant excitement internationally. What achievements has China made in developing new quality productive forces? What additional measures will the country take to cultivate these forces?
Zheng Shanjie:
Thank you for your question. Your observations align with our experiences: Over the past year, China has seen many highlights in technological and industrial innovation. The pervasive sense of technology and future has brought many pleasant surprises, generating high attention both domestically and internationally. We can say that new quality productive forces are comprehensively transforming our production methods and changing our lifestyles, profoundly altering China's economic and social development. My deepest impressions are captured in three aspects—three "accelerations."
The first is "accelerating technological breakthroughs." As already mentioned, the focused integrated circuits have achieved record-high production and exports, with more and more products equipped with "Chinese chips." AI large models are competing vigorously and rising rapidly, industrial robot density has significantly increased, humanoid robots are accelerating toward application, and numerous domestically created original drugs with international competitiveness are continually emerging, and so on. Many scenarios we previously saw only in science fiction films are becoming reality, and China is steadily advancing toward the forefront of global scientific and technological innovation. All this proves that the more we face suppression and blockades, the more we are compelled to accelerate our independent innovation.
The second is the accelerating industrial upgrading. Last year, China's high-tech manufacturing and equipment manufacturing accounted for 16.3% and 34.6% of the added value of industrial enterprises above designated size, respectively. The export value of mechanical and electrical products such as mobile phones and computers approached 60% of total exports. After "ten years of sharpening one sword," new energy vehicles have formed a complete industrial chain system. These developments indicate that industrial chains are accelerating toward medium and high-end development.
The third is "accelerating momentum enhancement." Recently, phenomenal high-tech products have been continuously emerging, reflecting the accelerated transformation of scientific and technological achievements from "bookshelves" to "store shelves." More and more enterprises are increasing their investment in scientific and technological innovation, with ever-strengthening endogenous innovation momentum. As we've seen, "dark horses" continually emerge on the innovation battlefield, quickly growing into "main forces."
Developing new quality productive forces according to local conditions is a long-term task and systematic project. The National Development and Reform Commission will focus on "funding, talent, and ecosystem," addressing three key priorities.
First, focusing on investment and continuously increasing scientific and technological innovation input. As just mentioned, we will establish a National Venture Capital Guidance Fund, mobilizing nearly 1 trillion yuan in local and social capital. We aim to focus on hard technology, adhere to long cycles, increase tolerance for failure, and invest in technology-based enterprises through market-oriented methods. Simultaneously, we will improve policies for mergers, acquisitions, reorganizations, and share transfers, encourage the development of acquisition funds, smooth venture capital exit channels, and attract social capital to participate in venture investment with greater strength, achieving market-oriented reconstruction of technology chains, industrial chains, and supply chains.
Second, focusing on talent and continuously cultivating high-quality talent teams. We will strengthen the cultivation of top innovative talents and scarce scientific and technological talents, fostering a large number of strategic scientists, outstanding entrepreneurs, excellent engineers, great craftsmen, and highly skilled talents through practice.
Third, focusing on ecology and continuously creating an open and inclusive innovation ecosystem. We will introduce policy measures to support the development of new quality productive forces, actively construct basic systems supporting comprehensive innovation, continuously improve inclusive and prudent supervision, and strive to create a vibrant ecological environment that upholds principles while encouraging innovation.
CNBC Reporter:
My question is for Governor Pan. Recently, some Chinese technology companies have made significant progress in technological innovation. What measures will be taken in 2025 to provide financial support for technological innovation?
Pan Gongsheng:
China's technological innovation activities are vibrant and, as the reporter mentioned, are attracting high attention from both domestic and international investors. Providing financial support for technological innovation is an important focus in implementing the innovation-driven development strategy and ensuring finance serves the real economy, as well as a key component of deepening supply-side structural financial reform. In recent years, the People's Bank of China, together with relevant departments, has used a comprehensive approach combining equity, debt, insurance, and other tools to increase financial support for technological innovation, accomplishing substantial work.
Technological innovation activities are complex and diverse. Tech innovation companies at different lifecycle stages—generally categorized as seed stage, startup stage, growth stage, and mature stage—have vastly different risk characteristics and financial needs. From the supply side, the adaptability of financial services needs further improvement. Cultivating a financial market ecosystem that supports technological innovation requires coordination of financial policies, science and technology policies, and industrial policies, as well as collaborative interaction among financial regulatory departments, science and technology departments, financial institutions, and technology enterprises—a persistent, long-term effort.
Recently, to further increase financial support for technological innovation, the People's Bank of China, in collaboration with the Securities Regulatory Commission, the Ministry of Science and Technology, and other departments, will innovatively launch a "Technology Board" in the bond market. At the same time, we will optimize the re-lending policy for technological innovation and technological transformation. Let me briefly introduce the specific content of these two policies.
The first is the innovative launch of the "Technology Board" in the bond market. This will support three types of entities—financial institutions, technology companies, and private equity investment institutions—in issuing technological innovation bonds, enriching the product system of technological innovation bonds.
First, we will support commercial banks, securities companies, financial asset investment companies, and other financial institutions in issuing technological innovation bonds, expanding funding sources for technology loans, bond investments, and equity investments.
Second, we will support growth-stage and mature-stage technology companies in issuing medium and long-term bonds for increasing R&D investment, project construction, mergers and acquisitions, and other activities in technological innovation fields.
Third, we will support leading private equity investment institutions and venture capital institutions with rich investment experience in issuing long-term technological innovation bonds, leveraging more funds to invest early, small, long-term, and in hard technology.
At the same time, the "Technology Board" in the bond market will improve institutional arrangements for the issuance and trading of technological innovation bonds based on the needs of technological innovation enterprises and the characteristics of equity fund investment returns. It will innovate risk-sharing mechanisms, reduce issuance costs, and guide bond funds to invest in technological innovation fields more efficiently, conveniently, and at lower costs.
The second is optimizing the re-lending policy for technological innovation and technological transformation. This policy already exists, and we plan to further optimize its elements. We will expand the re-lending scale from the current 500 billion yuan to 800 billion to 1 trillion yuan to better meet enterprises' financing needs. We will lower re-lending interest rates—these are the rates at which the central bank provides re-lending funds to commercial banks—strengthening policy incentives for banks. We will expand the scope of re-lending support, significantly increasing policy coverage. We will coordinate with fiscal authorities to maintain interest subsidy strength, effectively reducing enterprises' financing costs. We will optimize re-lending policy processes, improving the efficiency and convenience of policy implementation.
These specific policy measures will help stimulate technological innovation momentum and market vitality, attracting more private capital, government funds, and other social investments to participate in technological innovation. Moving forward, the People's Bank of China will strengthen communication and collaboration with relevant departments, improve the policy system for financial support of technological innovation, focus on cultivating a financial market ecosystem supporting technological innovation, and continuously enhance the capability, intensity, and level of financial support for technological innovation.
Finally, I would like to say that we welcome international investors to invest in Chinese technology enterprises. We oppose the instrumentalization and politicization of market-oriented investment behaviors and the establishment of improper investment barriers. Thank you.
Shenzhen TV Reporter:
A question for Minister Wang Wentao: Last year, despite increased external pressure and internal difficulties, China's foreign trade delivered impressive results, with a greater contribution to economic growth. The government work report outlined measures for stabilizing foreign trade. How do you view the situation facing foreign trade development this year, and what considerations and specific measures does the Ministry of Commerce have for stabilizing foreign trade?
Wang Wentao:
Thank you for your question. I'll answer from two aspects: "how we see it" and "what we'll do." Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, and through joint efforts from all parties, China's foreign trade performance has been remarkable. The government work report pointed out that exports have increased their contribution to economic growth. These achievements haven't come easily, and I'll summarize them with three "increasingly" aspects.
First, China's status as a major country has become increasingly consolidated. In 2024, goods imports and exports increased by 5% year-on-year, reaching 43 trillion yuan. Exports' share in the international market is preliminarily estimated at around 14.7%, with China maintaining its position as the world's largest goods trading nation for the eighth consecutive year. Service imports and exports reached 7.5 trillion yuan, a 14.4% year-on-year increase, nearly ten percentage points higher than goods trade growth. Calculated in US dollars, it exceeded 1 trillion dollars for the first time. This reflects profound changes in trade structure.
Second, trading partners have become increasingly diverse. China has become the main trading partner of more than 150 countries and regions, with Belt and Road Initiative partner countries accounting for over 50% of China's foreign trade imports and exports for the first time—a milestone reflecting the effectiveness of our diversification strategy. As we say, "If the West isn't bright, the East will be; if the North isn't bright, the South will be"—we haven't put all our eggs in one basket, demonstrating the strong resilience of China's foreign trade. We've signed 23 free trade agreements with 30 countries and regions, with imports and exports to free trade partners increasing to 34% of our total.
Third, development momentum has become increasingly strong. In goods trade, from small items like coffee makers and vacuum robots to large ones like electric vehicles and industrial robots, Chinese export products have higher technological content and are widely recognized internationally. Cross-border e-commerce has achieved double-digit growth for consecutive years, providing global consumers with more choices. In service trade, China's rapid technological development, including artificial intelligence, quantum technology, cloud computing, etc., is creating new paradigms for service trade. For example, DeepSeek, with its low-cost, high-performance open-source model, has lowered global technology usage thresholds. The appeal of Chinese culture has both attracted overseas tourists to "come in" and promoted games and films like "Black Myth: Wukong" and "Nezha 2" to "go out."
Currently, the adverse effects of the external environment are deepening, unilateralism and protectionism are intensifying, and certain countries are wielding the "tariff stick," disrupting international trade order and impacting the stability of global industrial and supply chains. China's foreign trade development faces severe challenges. In response, the CPC Central Committee has made arrangements, and the government work report has clarified the path. Now, I'll answer your second question. We will focus on three aspects—"strengthening policies, expanding incremental growth, and helping enterprises"—to stabilize foreign trade with all our efforts.
First, strengthening policies. We have issued a series of policies to promote stable growth in foreign trade. Various departments and local governments have already taken swift action, with some issuing implementation rules and others formulating supporting measures. We will work together to effectively implement these policies. At the same time, we will increase the strength of policies to stabilize foreign trade. Especially given the changing situation, we will combine addressing current prominent issues with promoting high-quality trade development, quickly research and reserve new support policies, and timely introduce them as needed to help enterprises secure orders and stabilize foreign trade.
Second, expanding incremental growth. We will promote the establishment of new cross-border e-commerce comprehensive pilot zones to support cross-border e-commerce and overseas warehouses, vigorously expanding intermediate goods trade and green trade. Service trade still has significant development potential. In terms of scale, service trade accounts for a relatively low proportion of China's total foreign trade—only 14.6% in 2024. In terms of structure, it's dominated by traditional service trade such as transportation and tourism, with knowledge-intensive service trade accounting for only 38.5%, still significantly behind developed countries. Looking ahead at expanding foreign trade growth, an important growth point is innovatively enhancing service trade. This work has two focal points. One is promoting openness and building platforms. Last year, we issued cross-border service trade negative lists for both the national level and free trade experiment zones, a milestone in service sector opening. We will fully implement the cross-border service trade negative list and steadily advance graded opening. We will also launch the construction of national service trade innovation and development demonstration zones, creating a batch of comprehensive reform and opening demonstration platforms for service trade. The other focal point is promoting integration and seeking practical results, enhancing the competitiveness of traditional service advantages, making multi-point efforts in developing inbound tourism, digital services, professional services, "bonded + services," and other fields, promoting the integrated development of goods trade, service trade, and digital trade.
Third, helping enterprises. Addressing the difficulties and problems faced by foreign trade enterprises, we will promote the expansion of export credit insurance coverage and scope, guiding financial institutions to increase financing support for foreign trade enterprises. We will continue to leverage the roles of major exhibition platforms such as the Import Expo, Canton Fair, Service Trade Fair, and Digital Trade Expo, supporting enterprises in participating in more overseas exhibitions to broaden trade channels and find more trade opportunities and partners. We will negotiate free trade agreements with more willing countries and regions, further expanding service trade and digital trade cooperation mechanisms, enhancing trade liberalization and facilitation.
Recently, my colleagues and I have researched many foreign trade enterprises. They indeed feel that the situation is changing rapidly and have encountered some difficulties. They told us that over the past few years, China's foreign trade has weathered many storms, gained experience, and stood the test, believing that "solutions always outnumber difficulties." We also firmly believe that the historical trend of economic globalization is irreversible and global trade cooperation is unstoppable. We are fully confident in stabilizing the foundation of foreign trade and taking new steps in building a strong trade nation.
Science and Technology Daily Reporter:
My question is for Chairman Wu Qing. Since the beginning of this year, technology companies represented by DeepSeek have received widespread market attention, with many international investment institutions believing that the "DeepSeek fever" will drive a reevaluation of Chinese technology companies' value. What's your view on this situation, and how can the capital market leverage its advantages to support technological innovation and lead the development of new quality productive forces?
Wu Qing:
Thank you very much for your question. I've noticed that the "technological content" of today's press conference is increasingly high, reflecting the increasingly important role played by the development of new quality productive forces. Artificial intelligence is a hot topic at this year's Two Sessions. DeepSeek has emerged prominently in the global AI field, not only shocking the AI industry but also giving the world a new understanding of China's technological innovation capabilities, driving a reevaluation of Chinese asset values. We've also seen that after the Spring Festival, the performance of technology stocks in A-shares, Hong Kong stocks, and other markets has been boosted by related hot spots. The capital market plays a unique and important supporting role in promoting industrial and technological innovation, and the more numerous and stronger technology innovation enterprises become, the stronger the capital market's vitality, attractiveness, and ability to create value for investors. The CSRC has always attached great importance to supporting technological innovation. In recent years, we have taken the opportunity of a series of reforms such as the Science and Technology Innovation Board (STAR Market) and the ChiNext Board to advance key institutional innovations and continuously enhance the "technological content" of the capital market. In 2024, high-tech enterprises accounted for more than 90% of newly listed companies on the STAR Market, ChiNext Board, and Beijing Stock Exchange. Currently, the market value of strategic emerging industry listed companies exceeds 40% of the total market, with a number of leading enterprises emerging in key areas such as advanced manufacturing, new energy, new generation information technology, and biomedicine. The quality and effectiveness of the capital market in serving technological and industrial innovation have significantly improved.
At the recent symposium with private enterprises, General Secretary Xi Jinping emphasized the need to strengthen independent innovation and transform development methods. The government work report also made further arrangements for promoting the integrated development of technological and industrial innovation. We will earnestly implement these directives, make full use of existing systems, actively research and continuously improve institutional mechanisms and product service systems that support the development of new quality productive forces, better serving Chinese-style modernization.
First, we will accelerate the establishment of support mechanisms specifically targeted at technology companies. Adhering to the combination of effective markets and capable government, we will focus on fields active in technological innovation that reflect the direction of new quality productive forces. We will make good use of the "green channel," unprofitable enterprise listing, and other systems, prudently implementing more inclusive issuance and listing systems such as the fifth set of listing standards for the STAR Market, providing more precise support for quality technology companies to issue and list. We will expedite the improvement of supporting mechanisms for the "Six M&A Measures," further clearing bottlenecks in valuation pricing, review processes, payment tools, and other aspects, vigorously promoting corporate mergers and acquisitions to optimize resource allocation and promote enterprise development, and pushing for more technology innovation enterprise M&A cases, especially landmark cases with demonstrative significance.
Second, we will cultivate long-term capital and patient capital with great intensity. Global experience shows that the rise of many leading technology companies is inseparable from long-term, patient capital investment. Only by enduring the solitude of "ten years of sharpening one sword" can one welcome the glory of "making a stunning debut." We will further encourage and support private fund investors and managers to adhere to long-termism, continuously enhancing their long-term support and value-added service capabilities for enterprises, supporting technology companies in focusing on their main businesses, concentrating on research, leading innovation, and accumulating strength for future breakthroughs. We will also continuously improve the regulatory rules for private equity and venture capital funds, focusing on optimizing "reverse hook" policies for exits, advancing pilot programs for distributing stocks in kind to investors, improving fund share transfer systems, supporting the development of private equity secondary market funds (S funds) and acquisition funds, further smoothing diversified exit channels, and working with relevant parties to improve evaluation and error tolerance mechanisms, supporting multi-channel expansion of funding sources, and promoting a virtuous cycle of "fundraising, investment, management, and exit."
Third, we will increase the supply of financial products and services supporting technological innovation. Supporting technology companies through the capital market isn't limited to listing alone, nor is it limited to stocks as the only tool. Bonds, convertible bonds, preferred stocks, asset securitization, options, futures, and other products and tools can also play a role, providing "relay-style" financing support and services. For example, the cumulative issuance scale of technology innovation corporate bonds has reached 1.2 trillion yuan, which is already a substantial volume. We will continue to deliver a "combination punch" supporting technological innovation, further improving the registration process for science and technology innovation bonds, steadily developing intellectual property asset securitization, and providing more comprehensive and efficient capital market services for technological innovation.
Technological innovation is a process of exploring the unknown, which both nurtures new momentum and is accompanied by risks. Technology companies often face great uncertainty in business performance and have long profitability cycles. Successful ones may experience explosive or even exponential growth, while unsuccessful ones may pay a huge price. This is the rule of the market and also the rule of innovation. We hope that all market parties will take a comprehensive, objective, and calm view of the risks in the growth of technology companies, effectively managing risks and obtaining returns through scientific methods and tools. Regarding the listing of unprofitable companies and other such matters, we hope that all parties will show more tolerance and understanding, working together to create a healthier and better market environment and innovation ecosystem for the development of new quality productive forces.
Zhejiang Daily Reporter:
A question for Director Zheng Shanjie: During this year's Two Sessions, deputies and committee members have reflected many new expectations in the area of people's livelihoods, and the topics most discussed by the public also concern livelihood issues. What specific measures will the National Development and Reform Commission take in its work this year?
Zheng Shanjie:
Thank you for your question. In his 2025 New Year's message, General Secretary Xi Jinping said: "ensuring that people live happy lives is the top priority." High-quality development ultimately aims to enable people to live good lives and to make those lives increasingly better. Over the past year, our incremental policies and funds have prioritized the top priority of people's livelihoods. In 2025, we will continue to focus on the issues that people care about most and need most, making efforts to solve their "urgent, difficult, worrisome, and anticipated" problems the focus of our livelihood work, translating policy strength into livelihood warmth. Summarized into four aspects:
First, accelerating solutions to people's "urgent matters," such as services for "the elderly and children"—every family has children, and everyone will grow old. With today's high work pressure and fast pace, everyone hopes to enjoy elderly care and childcare services right at their doorstep. This year, we will work with relevant parties to focus on reducing costs, lightening burdens, and optimizing services, with emphasis on community support for "the elderly and children." We will provide more low-cost facilities through public-private partnerships and other methods, support professional institutions in providing quality services, promote the installation of elevators, barrier-free facilities, and other renovations that facilitate elderly living, and push for more widespread and deeper integration of diversified services such as housekeeping, meal assistance, and disability support into communities, making communities carriers of more warmth and care.
Second, increasing efforts to solve people's "difficult matters," such as medical care. Some grassroots hospitals lack talent and equipment, and people often have to go to big cities and large hospitals for treatment. This year, we will implement a project to strengthen the foundation of medical and health services, equipping county and township levels with urgently needed medical equipment where population is concentrated, and improving mechanisms for high-level medical talent to move down to county and township levels. We strive to achieve "minor illnesses not leaving cities and counties, and daily ailments being resolved at the grassroots level." At the same time, we will accelerate the expansion, downward movement, and balanced distribution of quality medical resources, quickly completing the planned construction of 125 national regional medical centers. Through long-term consultations by renowned specialists from large hospitals and remote diagnosis and treatment, more people will conveniently enjoy high-level medical services.
Third, striving to solve people's "worrisome matters," such as how children can attend good schools, which many parents are deeply concerned about. In the coming years, we will adapt to changes in the school-age population, expand the supply of quality educational resources, and through balanced teacher resources and other means, incorporate more schools into group schooling and entrusted assistance, creating tens of thousands of new quality compulsory education schools and building thousands of quality ordinary high schools. At the same time, we will continuously promote the quality upgrading of higher education, expand quality undergraduate education, and further increase undergraduate enrollment in "double first-class" universities. Last year, enrollment expanded by 16,000 students, and this year we strive to add another 20,000. In short, we will work to enable more children to receive fairer and better quality education.
Fourth, effectively addressing what people "anticipate," such as the vast number of migrant workers in our urban areas. Their greatest expectation is to enjoy basic public services like children's education, housing security, and social insurance in their place of residence. This year, we will coordinate various funding channels, increase support for basic public service construction in areas where population flows in, and promote "one city, one policy" implementation methods, striving to transform migrant workers into true new urban residents who enjoy the same basic public services as registered residents.
In summary, the list of people's "urgent, difficult, worrisome, and anticipated" problems is our work task list. We will address them one by one, item by item, making real improvements and doing good things well.
Hong Kong Commercial Daily Reporter:
My question is for Minister Lan. Boosting consumption is a "high-frequency term" hotly discussed at this year's Two Sessions. How will fiscal "real money" support consumption?
Lan Fo'an:
Thank you for your question. Last year, the central government specially arranged 150 billion yuan in ultra-long-term special treasury bonds to support the trade-in of consumer goods, driving sales of related products such as automobiles and home appliances to exceed 1.3 trillion yuan. The results were excellent and widely welcomed. Director Zheng and Minister Wang both just mentioned this. This year, the CPC Central Committee has further proposed vigorously boosting consumption. The finance department will resolutely implement this, coordinating existing policies with incremental policies, optimizing supply with expanding demand, boosting consumption with improving people's livelihoods, and stimulating current consumption with enhancing long-term economic development momentum. We will research and formulate stronger and more precise policy measures to provide solid support for boosting consumption. This includes four key aspects:
First, increasing direct subsidies to consumers, strengthening and expanding the implementation of consumer goods trade-in programs to release consumer demand. This year, we have arranged 300 billion yuan in ultra-long-term special treasury bonds, doubling last year's amount, and have included products such as mobile phones and tablets in the subsidy scope, directly reducing consumers' shopping costs. Before this year's Spring Festival, the central government had already allocated 81 billion yuan in advance, ensuring subsidy funds were in place early so that consumers could promptly enjoy policy benefits.
Second, increasing investment in people's livelihoods to make residents' income more stable and protection more solid, enhancing consumption capacity and confidence. For the elderly, this year we will raise the basic pension for urban and rural residents and appropriately increase the pension level for retired employees, benefiting over 300 million people. At the same time, we will strengthen support for care services for disabled elderly people. For infants, we will provide childcare subsidies and establish a national funding system for preschool education. For students, we will further raise assistance and subsidy standards, expand policy coverage, and continue implementing interest-free national student loans and principal repayment deferral policies, expected to benefit over 34 million student instances. For urban and rural residents, we will increase the per capita government subsidy standard for basic medical insurance by 30 yuan, reaching 700 yuan per person per year. For low-income groups, we will continuously raise subsidy levels and implement protection policies for extremely poor individuals, minimum living allowance recipients, and other vulnerable groups. For groups facing employment difficulties, we will adopt comprehensive measures such as employment subsidies, unemployment protection, skills training, and public welfare positions to promote stable employment and stable income.
Third, increasing rewards and subsidies to local governments, guiding them to enhance the consumption environment and optimize consumption supply. On one hand, we will deeply promote the construction of pilot cities for modern commercial circulation systems and carry out county-level commercial construction actions to effectively leverage policy benefits. On the other hand, this year the central government will arrange additional subsidy funds to drive local governments to increase investment, supporting the promotion of new consumption forms, models, and scenarios, creating more new consumption hotspots. At the same time, we will develop international consumption cities, enhancing consumption convenience and experience.
Fourth, increasing the linkage between fiscal and financial policies, implementing two new loan interest subsidy policies to stimulate consumption momentum. One is to provide fiscal interest subsidies for personal consumption loans in key areas, reducing current expenditure pressure. The other is to provide classified interest subsidies for business entity loans in areas closely related to people's lives, such as catering and accommodation, health, elderly care, childcare, and domestic services, reducing financing costs and increasing the supply of more quality services.
Overall, this series of policies is strong in intensity and broad in coverage, conducive to opening up new consumption spaces and cultivating new economic momentum. The Ministry of Finance will work with relevant departments to continuously ensure the implementation of existing policies, promote early implementation of incremental policies, continuously release policy dividends, and form sustained strong support for promoting consumption, further enhancing economic development momentum through boosted consumption.
China Securities Journal Reporter:
My question is for Chairman Wu Qing. Since September 2024, the CSRC, together with relevant departments, has successively issued guidance opinions and implementation plans on promoting mid to long-term funds entering the market. What is the current progress of policy implementation, and what results have been achieved? Thank you!
Wu Qing:
Thank you very much for your question! Mid to long-term funds are the "stabilizer" and "ballast" for the healthy operation of the capital market. In September last year and January this year, we worked with relevant parties to issue guidance opinions and implementation plans for promoting mid to long-term funds entering the market, proposing a series of specific, targeted measures to create a more favorable institutional environment for "long money, long investment." The government work report again emphasized vigorously promoting mid to long-term funds entering the market. Currently, various departments are urgently implementing these measures, and initial results are emerging. Let me briefly report on the progress.
First, there is significantly more long-term money entering the market. The People's Bank of China has guided securities companies and fund companies to conduct two batches of swap facility operations, exceeding 100 billion yuan. More than 400 listed companies have publicly disclosed information on stock buyback and additional holdings re-lending, with a loan quota ceiling of nearly 80 billion yuan. The Financial Regulatory Administration has launched the second batch of insurance fund long-term stock investment pilots, approving 52 billion yuan before the Spring Festival and another 60 billion yuan the day before yesterday, with further expansion to follow. The Ministry of Human Resources and Social Security has extended the personal pension system nationwide, and the CSRC has actively cooperated to include the first batch of 85 equity index funds in the personal pension product directory. Since September last year, insurance funds and various pension funds have net purchased about 290 billion yuan in the A-share market, strongly supporting market stabilization and improvement.
Second, equity funds have developed significantly faster. To promote the high-quality development of index investment in the capital market, stock ETF products can now be quickly registered within 5 working days. Since last year, products like the CSI A500 Fund and the Science and Technology Innovation Board Composite Index Fund have been widely recognized by the market after their launch. From September last year until now, 459 equity funds have been registered, accounting for 70% of the total number of registered fund products during the same period. The scale of equity funds has grown from 6.3 trillion yuan to 7.7 trillion yuan, with their proportion of the total scale of public funds increasing from 20% to 24%. Along with the rapid growth in scale and proportion, the income status of public funds has also been steadily improving. To better protect investors' rights and interests, we have actively promoted public fund fee reform, reducing comprehensive fees in stages, which is expected to save investors more than 45 billion yuan in costs annually while also binding fund companies' interests more closely with those of investors.
Third, the long-cycle evaluation system has become more comprehensive. The Ministry of Finance, the Ministry of Human Resources and Social Security, and other departments are actively promoting the formulation and revision of policy documents for long-cycle evaluation of long-term funds. They have already solicited opinions and suggestions from relevant parties and, as we understand, will launch them as soon as possible. The issuance of these documents will fully establish long-cycle evaluation mechanisms for the National Social Security Fund for more than five years and for pension funds and insurance funds for more than three years. In the upcoming public fund reform plan, the CSRC will further increase the weight of long-cycle evaluations of more than three years for public funds, guiding the industry to pay more attention to rational investment, long-term investment, and value investment, better practicing the concept of investor-centered principles.
With joint efforts from all sides, the implementation of the guidance opinions and implementation plans for mid to long-term funds entering the market has gotten off to a good start, and the increasing market entry of various mid to long-term funds is continuously showing results. Since September last year, the tradable market value of A-shares held by various mid to long-term funds has grown from 14.6 trillion yuan to 17.8 trillion yuan, an increase of 22%. Moving forward, under the coordinated guidance of the Central Financial Office, we will work with relevant departments to further promote the implementation and effectiveness of various measures, striving to achieve a virtuous interaction between the value preservation and appreciation of mid to long-term funds and the healthy development of the capital market.
CNA Reporter:
My question is for Minister Wang Wentao. The international community is highly concerned about U.S.-China economic and trade relations. The two countries seem to have entered a new round of trade war. Just this week, in response to the U.S. again imposing tariffs on Chinese goods using the fentanyl issue as a pretext, China has announced countermeasures. Is China concerned that this will lead to a prolonged and escalating trade war? In the long term, what strategy will China adopt in dealing with the U.S.? Thank you.
Wang Wentao:
Thank you for your question. This is an issue of great international concern, and journalists are also very interested. Yesterday, a reporter stopped me to ask about this, and I said there would be a press conference today where I would be happy to answer in this setting.
First, let me respond to the U.S. imposing additional tariffs on China using the fentanyl issue as a pretext. Regarding the fentanyl issue, relevant Chinese departments have published a white paper detailing the factual situation and measures taken by China, clarifying China's position. Here, I particularly want to emphasize that on the fentanyl issue, the U.S. must respect facts and first take positive action itself rather than simply "passing the buck" to China. This won't solve their own problems, and using this as a reason to impose additional tariffs on China further confuses right and wrong and reverses black and white.
Since taking office, the new U.S. administration has successively issued "America First" trade and investment policy memoranda, resumed Section 232 steel and aluminum tariffs on global trading partners, announced "reciprocal tariffs," and proposed port fees and other Section 301 investigative restrictive measures targeting Chinese industries such as shipbuilding. The tariff list seems to be growing longer. These measures that threaten and coerce with tariffs are typical unilateralist and bullying behaviors that seriously violate WTO rules. They not only damage normal China-U.S. economic and trade relations but also disrupt the stability of global industrial and supply chains, hinder world economic development, and will inevitably harm the interests of American people and businesses—a typical case of harming others without benefiting oneself. You may have noticed the U.S. capital market's reaction—after the U.S. announced additional tariffs, the three major U.S. stock indices fell in response.
I particularly want to emphasize that there are no winners in a trade war, and protectionism has no future. The U.S.'s unilateralist policies and bullying behaviors go against the tide of history, causing widespread concern and universal opposition in the international community. In Chinese traditional ways of interaction, those who respect others are respected in return; those who don't respect others will be treated in the same manner. Coercion and intimidation won't work with China and won't frighten China. China's determination to defend its interests is unwavering. In response to the unilateral tariff measures taken by the U.S., China has adopted necessary countermeasures in accordance with domestic laws and regulations and basic principles of international law. If the U.S. continues further down the wrong path, China will accompany them to the end.
China has always believed that the China-U.S. economic and trade relationship is essentially mutually beneficial and win-win. There is no question of who always loses or who always gains. Facts and data fully demonstrate that using tariffs to "build walls" cannot change market rules or block cooperation. In 2024, China-U.S. trade reached $688.2 billion, an 18% increase compared to 2017. According to the American Chamber of Commerce in China report, 46% of surveyed U.S. companies indicated they expect to be profitable or very profitable, and more than half of the companies anticipate increasing their investments in China in 2025. The success of each country represents an opportunity rather than a threat to the other. The two countries have extensive common interests and broad space for cooperation. China-U.S. cooperation aligns with the fundamental interests of both peoples and meets the expectations of the international community.
As two major countries with different national conditions, it's normal for China and the U.S. to have differences in economic and trade areas. If the U.S. wants to solve problems, it should demonstrate the demeanor of a great power and adopt the correct way of interaction. Last month, I sent letters to the new U.S. Secretary of Commerce and the Trade Representative, hoping to resolve mutual concerns through equal dialogue and consultation. We can meet at an appropriate time, and our teams can communicate as soon as possible. We hope the U.S. will move towards China in the direction indicated by the phone call between our two heads of state, strengthen dialogue, manage differences, promote cooperation based on the principles of mutual respect, peaceful coexistence, and win-win cooperation, and jointly promote the healthy, stable, and sustainable development of China-U.S. economic and trade relations.
Cover News Reporter:
A question for Governor Pan Gongsheng: Preventing and controlling financial risks is an eternal theme of financial work. What is the current situation of financial risks in key areas? What progress has been made in financial support for local financing platform debt resolution? What are the key tasks in preventing and controlling financial risks in the next steps?
Pan Gongsheng:
Currently, China's financial system is generally stable, financial institutions are overall healthy, local debt and real estate risks continue to converge, and financial markets are operating smoothly.
First, we are steadily advancing the reform and risk resolution of high-risk small and medium-sized financial institutions. By the end of 2024, commercial banks' capital adequacy ratio was 16%, non-performing loan ratio 1.5%, and provision coverage ratio 211%—all significantly higher than regulatory standards. These key banking indicators also demonstrate the health of China's banking sector. The People's Bank of China, regulatory departments, and local governments are working together in coordination, following market-oriented and rule of law principles, using various methods such as online repair, mergers and reorganizations, and market exits to prudently dispose of small and medium-sized bank risks. The number of high-risk small and medium-sized banks has decreased by half from its peak.
Second, we are actively supporting the resolution of real estate market risks and promoting stable, healthy development. Last year, the People's Bank of China, based on its macro-prudential management function, optimized and adjusted real estate financial policies, unified the minimum down payment ratio for housing loans to 15%, lowered interest rates for newly issued housing loans, and promoted the reduction of interest rates for existing housing loans. The downward adjustment of existing housing loan interest rates last year can reduce interest expenses by about 150 billion yuan annually for over 50 million households. We guided financial institutions to support the delivery of pre-sold homes. Combined with operating entities' self-repair through adjusted business strategies and debt restructuring, recent indicators such as commercial housing transaction volume, transaction prices, and real estate loans point to increased real estate market activity.
Third, financial support for resolving financing platform debt has achieved important phased results. The People's Bank of China, along with relevant departments and local governments, has taken multiple strong measures to weaken local financing platform debt risks. First, we have enforced strict fiscal discipline, promoting local governments' coordination of funds, assets, and resources to resolve debt risks. Second, we support local governments in stripping away the government financing functions of financing platforms through methods such as asset injection and mergers and reorganizations, transforming them into market-oriented operating entities. Third, we guide financial institutions to negotiate equally with financing platforms according to market-oriented and rule of law principles, alleviating financing platforms' liquidity and interest burdens through debt restructuring methods such as lowering interest rates and extending terms.
Through multiple efforts, financing platform debt risks have significantly decresed. The People's Bank of China established a standardized, routine financing platform debt statistical monitoring system in 2023. Local governments and financial institutions regularly submit financing platform debt data bidirectionally and conduct cross-verification. We have established strict financing platform exit standards and procedures with the Ministry of Finance. By the end of 2024, compared with early 2023, about 40% of financing platforms have exited the financing platform sequence through market exits, market-oriented transformation, and other methods. Financing platform debt, based on its origin, consists mainly of two parts: local government hidden debt and operational financial debt. Regarding the resolution of financing platform hidden debt, Minister Lan has already provided an introduction. Let me explain the resolution of financing platform operational debt. By the end of 2024, the scale of financing platform operational financial debt was approximately 14.8 trillion yuan, about 25% lower than at the beginning of 2023. About three-quarters of this operational financial debt is concentrated in major economic provinces in eastern and central China, which have strong debt resolution capabilities themselves. In the fourth quarter of 2024, the average interest rate of newly issued bonds by financing platforms was 2.67%. This clearly shows that the risk premium level for financing platforms in the financial market has significantly decreased.
Fourth, we are exploring and expanding macro-prudential and financial stability functions, maintaining the stable operation of financial markets such as foreign exchange, bond, and stock markets.
Regarding the foreign exchange market, the People's Bank of China adheres to the decisive role of the market in exchange rate formation. In the face of various external shocks and challenges, we decisively and timely adopt macro-prudential management measures. At the same time, we strengthen communication with the market and guidance of expectations, resolutely correct market pro-cyclical behaviors, and prevent exchange rate overshooting risks. Despite the depreciation of non-US dollar currencies to varying degrees, we have maintained the basic stability of the RMB exchange rate. Currently, China's economic fundamentals continue to improve, and the international balance of payments is basically balanced. After years of development, China's foreign exchange market has become more resilient, market participants more mature, and the use of exchange rate hedging tools more widespread. We have the experience, confidence, and ability to maintain stable operation of the foreign exchange market.
Regarding the bond market, as of the end of 2024, the bond default rate was about 0.25%, continuing to remain at a low level, with overall stable market operation. At the same time, regarding the rapid decline in long-term government bond yields in the short term during the previous period, the People's Bank of China observed and evaluated bond market operations from a macro-prudential perspective, promptly alerted market participants to risks, strengthened regulatory coordination, and effectively weakened and blocked risk accumulation.
Regarding the capital market, the People's Bank of China, together with the CSRC, created two tools: swap facilities and stock buyback re-lending. These have played a positive role in promoting stable capital market operation. Chairman Wu Qing just gave a brief report. Currently, the usage of the two tools is as follows: swap facilities have conducted two operations totaling 105 billion yuan. As of the end of February this year, listed companies have disclosed plans to apply for buyback loan amount limits of about 75 billion yuan, and financial institutions have reached cooperation intentions with nearly 900 listed companies and major shareholders.
In the next steps, the People's Bank of China will further explore and expand macro-prudential and financial stability functions, maintain financial market stability, and firmly hold the bottom line of preventing systemic financial risks.
First, we will focus on the connection between macroeconomic operation fluctuations and financial risks. From a macro level, we will grasp the dynamic balance between economic growth, economic structure adjustment, and financial risk prevention, increase counter-cyclical policy adjustment, and create a good monetary and financial environment for high-quality development.
Second, we will prevent external risks from spilling over to and impacting China's financial markets. Currently, the external environment is becoming more complex and severe, as Minister Wang Wentao just explained clearly. Major developed economies face rising uncertainties in inflation trends and monetary policy adjustments, affecting global market expectations and investment confidence, exacerbating international financial market volatility risks, and bringing spillover effects to China's stable economic and financial operation. We will strengthen monitoring, assessment, and early warning of domestic and international financial market risks, improve disposal mechanisms and response plans, strictly prevent and control external shock risks, and maintain China's financial stability and national financial security.
Third, we will improve the effectiveness of financial supervision and strengthen financial regulatory coordination. Financial supervision is the "first line of defense" against financial risks. We will strengthen the coordination between macro-prudential management and micro-prudential supervision, enhance financial risk monitoring, early warning, and assessment capabilities, improve the financial risk disposal responsibility mechanism with equal rights and responsibilities and compatible incentives and constraints, "identify early, warn early, and dispose early" of financial risks, and prudently clear risks according to market-oriented and rule of law principles.
Fourth, we will improve macro-prudential management policies and enrich the policy toolbox. We will improve additional regulatory policies for systemically important financial institutions, strengthen counter-cyclical management of capital buffers and provisions, and enhance macro-prudential management of major financial activities, financial markets, and financial infrastructure. Based on the operation of financial markets and the financial system, we will explore and expand the central bank's macro-prudential and financial stability policy tools, continuously improving and consolidating the financial stability guarantee system.
National Business Daily Reporter：
My question is for Director Zheng Shanjie of the National Development and Reform Commission. This year marks the final year of the "14th Five-Year Plan" and a crucial year for planning the "15th Five-Year Plan." In recent years, the entire nation has experienced many major events and challenges. How do you view the economic and social changes that have occurred during these years? Could you introduce the relevant situation of the "15th Five-Year Plan"?
Zheng Shanjie:
Thank you! This is a major matter that everyone is thinking about and participating in this year. Since the "14th Five-Year Plan" began, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the entire nation has worked together with one heart, progressively turning the "14th Five-Year Plan" development blueprint into reality. The progress of various goals and tasks is in line with expectations. China's comprehensive strength continues to increase, social stability is maintained, and China's lovable, credible, and respectable image has gained wider recognition. This is specifically reflected in six "significant improvements."
First, a significant improvement in comprehensive national strength. China's economy demonstrates the scale advantages of a world power, with GDP continuously reaching new heights. The economic increment during the "14th Five-Year Plan" is expected to exceed 30 trillion yuan. To put it vividly, this is equivalent to creating another Yangtze River Delta region, or comparable to the annual economic total of a developed economy. China is also the largest driving force for global economic growth.
Second, a significant improvement in industrial competitiveness. China has formed a complete industrial system with 41 major industrial categories, 207 medium categories, and 666 small categories, making it the only country in the world with the most complete system and comprehensive categories. The industrial chain is also accelerating its upgrade toward the medium and high-end.
Third, a significant improvement in scientific and technological innovation capability. China has made comprehensive efforts in basic research and breakthroughs in key core technologies in the "sea, land, air, and space" domains, harvesting not only many "China's firsts" but also achieving several "world firsts." For example, technological innovations in integrated circuits, artificial intelligence, quantum technology, aerospace, marine technology, high-speed rail technology, and other fields continue to achieve new breakthroughs. "Major country equipment" such as domestically produced large cruise ships, large aircraft, and heavy-duty gas turbines have attracted much attention. "Made in China" is accelerating its transformation toward "Created in China."
Fourth, a significant improvement in people's livelihood protection capabilities. In recent years, we have made every effort to stabilize employment and promote income growth, with a cumulative increase of about 50 million new urban jobs. Residents' income has basically kept pace with economic growth. Public services and social security have been continuously strengthened, with residents' pensions increasing year by year, direct settlement of cross-provincial medical treatment becoming more convenient, and "doorstep" community services becoming more abundant. Environmental quality has improved significantly, and everyone can clearly feel that our sky is bluer, water clearer, and land greener.
Fifth, a significant improvement in security foundation capabilities. The capacity and level of food and energy security have reached new heights, and the development resilience and security level in areas such as industrial chains, supply chains, and finance have steadily improved. Looking at the infrastructure supporting secure development, high-speed rail operating mileage has reached 48,000 kilometers, accounting for 70% of the global total; highway mileage has reached 190,000 kilometers, firmly ranking first in the world; total computing power has doubled; and the total volume of data production has grown rapidly, equivalent to the total data resources of more than 15,000 national libraries.
Sixth, a significant improvement in the national image and influence. China has signed Belt and Road cooperation documents with more than 150 countries and over 30 international organizations, coordinated the promotion of landmark projects and "small but beautiful" livelihood projects, widely conducted cooperation in fields such as industry and investment. The Global Development Initiative, Global Security Initiative, and Global Civilization Initiative have become international consensus, fully demonstrating China's responsibility as a major country. We have continuously expanded high-level opening-up, completely "zeroed out" foreign investment access restrictions in the manufacturing sector, and reduced the number of restricted measures in the negative list for foreign investment to 29, continuously expanding and deepening new space for cooperation and win-win development.
After these years of development during the "14th Five-Year Plan," our confidence and foundation for high-quality development have been further strengthened. This year, we will follow the decisions and arrangements of the CPC Central Committee and the State Council to carefully carry out the relevant work for the "15th Five-Year Plan" formulation. Here, I will introduce two key points:
First, implementing the CPC Central Committee's proposals for the "15th Five-Year Plan," based on thorough investigation and research, working with all parties to draft the Plan's Outline, proposing a series of major strategic tasks, major policy measures, and major engineering projects, to be submitted to next year's National "Two Sessions" according to procedures.
Second, organizing the formulation of a series of key special plans and regional plans, covering various aspects such as scientific and technological innovation, industrial development, social undertakings, cultural construction, and ecological environment, as well as key areas closely related to people's lives such as employment, education, healthcare, and social security.
The formulation of the "15th Five-Year Plan" Outline is a process of gathering wisdom and building consensus. We will use various effective methods to carefully listen to the opinions and suggestions from NPC deputies, CPPCC members, the general public, entrepreneurs, experts, scholars, and other parties, making the plan better reflect development needs and people's aspirations.