Chairperson:

Thank you. Mr. Yi Gang. Now the floor is open to questions.

Phoenix Satellite TV:

My question is for Mr. Yi Gang. We have noticed that the European Central Bank has recently restarted QE (quantitative easing), and the Federal Reserve has also started its second interest rate cut in the year. The monetary policy of major global economies all tends to be moderately easy. Given the current domestic economic situation, is it necessary for China to follow up with an interest rate cut? And will the monetary policy direction be adjusted? Thank you.

Yi Gang:

Thank you for your questions. As you said, the central banks of the United States, Europe and Japan, as well as those of many developing countries, have recently adjusted their monetary policy direction by either restarting QE or cutting interest rates. In this context, what is China's monetary policy direction? As we all know, China is a large economy. Our monetary policy mainly serves the domestic economy, so we adjust our monetary policy based on our actual conditions, taking into account the domestic economic situation and price trends for anticipatory adjustments and fine-tuning. Presently, China's economy is still within a reasonable range, and prices are also within a relatively moderate range. In the process of transformation and upgrading, we have encountered some structural problems, which are mainly being solved through supply-side structural reform.

Yi Gang:

After a comprehensive analysis of China's domestic situation and international background, we believe that China's monetary policy should remain firm and keep a stable course. On the one hand, we should stabilize the current situation, that is to say, we should strengthen counter-cyclical adjustments, and keep the growth rate of our M2 money supply and aggregate financing to basically match that of our nominal GDP. We stand firm in not adopting strong stimulus policies. On the other hand, we should also pay attention to maintaining the stability of our leverage ratio, so that the debt level of the whole society is at a sustainable level. At the same time, we should also make long-term plans, that is to say, we should strengthen structural adjustment, work hard to improve the transmission mechanism of monetary policy, reduce the financing cost of enterprises by means of reform, and promote high-quality economic development.

Yi Gang:

If you want to know the global monetary policy direction, including that of the developed countries and regions like the United States, Europe and Japan and that of the developing countries in the coming years, I have an assessment. Over the next few years, if any country, especially any major economy, can still maintain a normal monetary policy, such an economy should be the highlight of the global economy, and it also should be an admired place in the global market. Thank you.