Shou Xiaoli:

Thank you. Now, let's give the floor to Mr. Li Chao. 

Li Chao:

Ladies and gentlemen, good afternoon. Since the 18th National Congress of the CPC, we have been conscientiously implementing the spirit of the important instructions of General Secretary Xi Jinping on the capital market and implementing the arrangements of the CPC Central Committee. We have comprehensively deepened the reform and opening up in the capital market and worked harder to develop the underlying institutions. As the result, a profound structural change is taking place in the capital market. The inclusiveness of the market system significantly improves and the investment and financing functions are greatly enhanced. A healthy market ecosystem gradually forms. Over the past decade, the sizes of the stock market and the bond market have expanded by 238.9% and 444.3%, respectively, both ranking second in the world. The stock market, attracting more than 200 million investors, is making a great contribution to the country's high-quality development. 

Over the past decade, our support for the real economy has covered a wider range and gone deeper. We improved the multi-tiered market system, established the "New Third Board" and the science and technology innovation board (STAR), and set up the Beijing Stock Exchange. As the capital market becomes more adaptive to the real economy, the accumulated financing from bonds and equities has reached 55 trillion yuan. A smooth and highly developed relationship between science and technology, capital, and the real economy has taken shape, and the STAR has nurtured an effect of industrial agglomeration centering on "hard science and technology". The exchange bond market has become an important financing channel for non-financial companies, with future and option products covering the main sectors of the national economy.

Over the past decade, significant breakthroughs have been made in comprehensively deepening reform. Focusing on deepening the supply-side structural reform in finance, we have further advanced the reform in the capital market and the underlying institutions have become more mature and well-defined. We have realized the transformation from an approval-based system to a registration-based system which has been piloted steadily. The issuance became more market-oriented and the approval and registration more efficient and predictable. Critical systems regarding trading and delisting have been systemically upgraded, and the overall reform is in line with market expectations. 

Over the past decade, market entities have made new progress in terms of high-quality development. The profits of listed companies in the real economy accounted for nearly 50% of the profits of industrial enterprises above designated size. While ten years ago, the proportion was 23%. Their status as the backbone of the national economy has been consolidated. Over the past ten years, the total assets of securities and futures companies have increased 6.5 times and the scale of public funds has grown 9 times to 26 trillion yuan. The industry has grown significantly. 

Over the past decade, the Chinese capital market has become more appealing to the world with an ever-increasing influence. We coordinated opening-up with security and ushered in a new chapter of institutional opening up. We thoroughly eased restrictions on the share of foreign capital in institutions of the industry and launched the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect as well as the Shanghai-London Stock Connect. The A share stocks were added to international indexes and continued to weigh heavier. As for the foreign capital, we have seen its net inflow for years in a row.

In the past decade, the legal system has basically formed a pillar to support the capital market. We saw the introduction of the new Securities Law and Amendment XI to the Criminal Law. The General Office of the CPC Central Committee and the General Office of the State Council have released a document that aims to crack down on illegal activities in the securities market. The introduction of the Law on Futures and Derivatives has paved a sound legal foundation for high-quality development of the futures market. Through these efforts, the deterrence of the law has notably increased as we impose "zero-tolerance" on related illegal activities. Breaking the law or regulations with zero or little consequences has become a thing of the past.

The past decade has seen China's stronger market resilience to counter risks. We continue to improve efficiency in governance through reform, improve internal stability and external constraint mechanism, stabilize market expectations timely, to ensure that the market risks have been reduced at a basically controllable level. In recent years, we have also withstood various unexpected shocks both from within and outside of the country, with our major indicators remaining stable and the development momentum kept consolidating.

Next, we will continue to build a strong mechanism, make no unnecessary interventions and have zero tolerance for illegal activities in order to create an orderly, transparent, open, dynamic, and resilient capital market. These efforts will enable us to pave the way for a successful 20th CPC National Congress.

Thank you!